Kinerjapay Corp (OTCMKTS:KPAY) is climbing back up the charts again after being as low as $0.12 a share. KPAY has been a big runner for us at Insider Financial in the past and that’s why we are taking a look at the stock again. OTC stocks have started 2019 off with a bang and KPAY is already up 200% to start the New Year. Knowing how KPAY has behaved in the past, this New Year run could just be getting started.
First up, a little background info for those that are not familiar with KPAY. KPAY enables consumers to “Pay, Play and Buy” through its secure web portal and mobile applications. Based in Indonesia, the Company provides an easy and convenient payment solution while shopping online at its marketplace platform. With its current omnichannel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance and direct transfer to anyone at their convenience. KinerjaPay is also planning to launch other eCommerce verticals such as travel market, delivery services, and online gaming in the near future. The Company’s services are available through its mobile applications and on its website.
KPAY just announced that PT. Investa Wahana Group, Indonesia will 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.
This deal is big and provides incentives to get the stock trading at much higher levels. KPAY intends to use the funds for 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. Chairman & CEO Edwin Witarsa Ng said:
“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.”
2019 game plan
In 2019, the Company will expand into the 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.
Currently trading with a market cap of just $15 million, KPAY is an exciting story among small caps. With its new $200 million war chest, KPAY looks primed for growth. 2019 looks to be a big year for KPAY and one which we will be following closely for our subscribers.
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Disclosure: We have no position in KPAY and have not been compensated for this article.
Image courtesy of Ferry Octavian via Flickr