- Peak Fintech Group Inc. (PKK) has successfully tested the process where its Chinese operating subsidiaries periodically send funds back to Canada
- The company said this will occur once it becomes profitable and deems it appropriate for its subsidiaries to do so
- CEO Johnson Joseph said Wednesday’s announcement has been several years in the making
- The amount of the transfer was kept confidential
- Peak Fintech Group Inc. is down 0.33 per cent to C$2.98 per share
Peak Fintech Group Inc. (PKK) has successfully tested the process where its Chinese operating subsidiaries periodically send funds back to Canada.
The company said this will occur once it becomes profitable and deems it appropriate for its subsidiaries to do so.
Long before establishing its operating subsidiaries in China, Peak worked with business consultants, tax experts, legal and financial advisors specialized in helping foreign entities do business in China.
Together they helped Peak create and put in place a corporate structure and file the necessary paperwork so that Peak’s subsidiaries could eventually follow a government-established process to send funds to the company’s Canadian head office.
Part of the exercise required a disclosure process with various government departments at the time of registration and creation of each subsidiary, and the continuous maintenance in good standing of prescribed regulations – all of which led to the first successful transfer of funds from Peak’s Asia Synergy Data Solutions subsidiary to the company.
Peak CEO Johnson Joseph said Wednesday’s announcement has been several years in the making.
“We’ve been following our advisors’ advice from day one and were always confident that the process would work as described. But until recently we weren’t in a position to test it or had real grounds to do so. However, given the path that the company is currently on and the possibility of repatriating funds from China at some point in 2021, we felt it was important for us to test the process to ensure that it actually works.”
Joseph said the company has now validated that it has a clear path and process, endorsed and prescribed by the Chinese government authorities, for its subsidiaries to send funds from China to Canada.
“We’re also very pleased with the amount we were able to transfer and how quickly the transaction was completed,” Joseph said.
The amount of the transfer was kept confidential as Peak has adopted an internal policy not to disclose the value of these types of transactions if and when such transactions are referred to in public communications.
Peak Fintech Group Inc. is the parent company of a group of innovative financial technology subsidiaries operating in China’s commercial lending industry.
Peak Fintech Group Inc. is down 0.33 per cent to C$2.98 per share.
