KinerjaPay Corp., a Delaware corporation (OTCQB: KPAY), a digital payment and e-commerce platform, ("KinerjaPay" or the "Company") announced that it has received a signed commitment from PT. Investa Wahana Group, Indonesia to invest $200 million, subscribing for $100 million in shares of the Company's Series F and an addition $100 million in shares of the Company's Series G Convertible Preferred Stock.
The Series F Preferred Stock, bearing a dividend of 6% per annum, is convertible into shares of the Company's Common Stock at an average of $1.80 per share. The Series G Preferred Stock also pays a dividend of 6% per annum and further provides for the Company's right to force the conversion at $1.80 per share, provided that the KinerjaPay shares are trading at $3.50 per share or higher for a period of 20 days commencing six months after the date of issuance of the Series G Preferred Stock.
KinerjaPay's use of proceeds are to fund the Company's peer-to-peer lending operations, potential acquisitions and strategic investments in the Company's home-based region as part of their expansion plan for 2019. The Company also plans to allocate a certain portion of the subscription proceeds to repurchase KinerjaPay's stock in the open market, subject to the rules and regulations of the SEC.
The Company's Chairman and CEO, Mr. Edwin Witarsa Ng, further commented that: "This investment commitment, which is expected to close within the next ten days, will accelerate our growth plan for 2019 as we evaluate several potential acquisitions as well as proceed with strategic investments, which should, in turn, transform the Company into a significant market presence in our eCommerce and peer-to-peer lending operations, principally in Indonesia." In 2019, the Company will expand into prepaid mobile business, p2p lending, mobile payment solutions, online gaming, and eCommerce services initially in Indonesia's growing economy and expanding in SE Asia. Additionally, the company intends to make investments in certain related industries in other foreign countries.
The spokesperson from Wahana Group, Mr. Rio Chandranegara, further commented that: "We are excited about this investment opportunity as the growth of ecommerce and peer-to-peer lending business has been unprecedented lately in emerging country like Indonesia. KinerjaPay as one of the leading digital market players in Indonesia, it is also a US Company which trades in the world's most liquid market in the United States, we are proud to be the financial backer of KPAY's CEO, Mr. Edwin Ng and to support his growth plan in the near future."