KinerjaPay Corp (OTCMKTS:KPAY) on Monday said it expects to receive a bank guarantee for $25 million by March 31.
In a statement, the company noted it has incurred additional costs thanks to a decision by the bank's compliance department to hike the cost of issuing the MT-799 Bank Guarantee, thus delaying the receipt.
KinerjaPay said CEO Edwin Ng's recent $1 million equity infusion into the company will allow it to “handle this burden.”
READ: KinerjaPay secures $30M bank guarantee to boost microlending operations
The company's investor, Infinity Venture Capital Pte Ltd, a Singapore-based corporation, has advised it that once these costs have been covered, the bank will issue the $25 million guarantee to its local bank.
KinerjaPay said Infinity has confirmed their investment through a convertible preferred, which is convertible at $1.80 a share and KinerjaPay has an established line of credit with China Construction Bank of Jakarta for $25 million.
"This process has taken significantly longer than anyone could have anticipated. I am convinced, as evidenced by my own investment, that we are finally at the end of a lucrative process for our shareholders. I expect to receive the Bank Guarantee by the end of March 2020," Ng said.
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