Peak Positioning Technologies (PKK:TSXV) is the latest of a slew of junior tech stocks to entice investors to its story. The stock was up 3 cents or 200% Friday on over 6 million shares traded. While its volume made Peak Positioning the most heavily traded stock on the TSX Venture Friday the dollar value of all trades was just north of $250,000.
Peak Positioning is the latest in a long, long line of software developers focused on expanding programs and devices which harness what is known as the cloud. Cloud computing involves distributed computing over a network; instead of using a number of servers or one computers, it allows programs to run on many connected computers at once.
The Montreal-based company is focused on developing software for smartphones and other mobile computing devices. Peak Positioning works with Mobile Network Operators (MNOs) around the world to develop custom cloud-based mobile application platforms with built-in applications and features that allow these MNOs’ networks to stand out from their competitors’ networks.
What makes Peak’s rise so incredible is that the stock spent the entire week at $0.015 per share. It traded no more than 173,000 shares on any prior day this week.
Peak Positioning Technologies was up 200% to $0.045 after hitting a high of $0.055 in early morning action. Its 52-week high is $0.075. The attention came after announcing its agenda in respect to acquiring Quickable.com.
An excerpt from yesterday’s press release is below.
“Peak Sets Closing Agenda for Quickable.com Acquisition
Peak Positioning Technologies Inc. (TSX VENTURE:PKK) (“Peak” or the “Company”) today announced that it has concluded its due diligence, has filed the necessary documents with the TSX Venture exchange related to its planned acquisition of the assets associated with Quickable marketplace, and has set a closing agenda to close on the transaction on June 13, 2014.
Peak and Quick Technologies LLC (“Quick Tech”), the current owner of Quickable, are working diligently to draft and execute the necessary legal documents to officially transfer the Quickable assets to Peak. As compensation for the Quickable assets, Quick Tech will receive from Peak, at the closing of the transaction, CAD$200,000 in cash, CAD$200,000 in interest-free promissory notes and 20 million Peak shares at a deemed price of CAD$0.05 per share for a total consideration at closing of CAD$1.4 million. Quick Tech will also receive 5% of the top-line revenues generated by the Quickable.com assets through the end of calendar year 2016 up to a maximum of CAD$600,000 in cash, bringing the total compensation payable to Quick Tech for the Quickable.com assets to CAD$2 million.
“We view Quickable as a key component of our strategic plan going forward, particularly for its potential in the fast-growing Chinese mobile e-commerce market”, said Johnson Joseph, President and CEO of Peak. “With that in mind, we strongly believe that this transaction is structured in a way that creates a win-win situation for both Peak and Quick Tech, and that it will ultimately bring significant value to all Peak shareholders”, concluded Mr. Joseph.”
Click here to read the entire press release.
The fact that Quick Technologies was willing to take a portion of payment in stock at $0.05 per share clearly breathed some confidence into Peak’s market Friday.
Peak Positioning reported its year-end financial results for 2013 on April 30th 2014. The results explain quite quickly why, previous to today, the stock had a market cap of less than $2 million.
An excerpt is below:
Financial Highlights:
- Net revenues from royalties and consulting of $300,283 derived from Chinese market
- R&D expenditures, net of tax credits, of $467,221.
- Net loss of $830,800 for the year.
Click here to read the entire press release.
Peak Positioning is hoping to increase its revenues in China. The coming quarters will be a great test for this emerging junior tech stock.
