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Friday, November 27, 2020

Quite the Day for Kinerjapay Corp (OTCMKTS:KPAY)

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Perhaps the big breakout of the week on the OTC can be found in shares of Kinerjapay Corp (OTCMKTS:KPAY). The stock took flight on Wednesday in response to news that the company just announced it has successfully concluded negotiations with its local bank, China Construction Bank Indonesia (CCBI), which will provide the Company with a $25 million, non-recourse credit facility. Obviously, access to capital as a funding runway is one of the most important variables for assessing potential in a micro-cap, so this news is justifiably important to the market.

According to the release, “This credit facility will be accessed by the Company utilizing the Gabriel Capital Ltd. HSBC bank guarantee, the draft of which has already been approved by the Bank’s Credit Committee. Gabriel is a privately-owned, Indonesian family-controlled entity, based in Singapore. The final HSBC bank guarantee for $25 million is expected to be received in KinerjaPay’s account with CCBI within the week. Upon delivery of the collateral, KinerjaPay will draw down the guaranteed net proceeds of $22.5 million in three monthly tranches of $7.5 million commencing within 48 hours of receipt of the final bank guarantee. Upon each draw, KPAY will issue Gabriel a proportionate number of shares of Series F and G Preferred Stock under Gabriel’s executed Reg S Subscription Agreements, based upon the net subscription proceeds. Gabriel intends to continue delivering such guarantees until the full $200 million is received under these Subscription Agreements.”

Kinerjapay Corp (OTCMKTS:KPAY) trumpets itself as a company that operates an e-commerce platform in Indonesia. The company’s platform, KinerjaPay IP, an e-wallet service for bill transfers and online shopping; and allows top-up phone credit for users. KinerjaPay Corp. was founded in 2010 and is based in Medan, Indonesia.

KinerjaPay 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 at www.kinerjapay.com.

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As noted above, KPAY just announced that it has successfully concluded negotiations with its local bank, China Construction Bank Indonesia (CCBI), which will provide the Company with a $25 million, non-recourse credit facility. 

Traders will note 93% during the past week in terms of shareholder gains in the listing. In addition, the name has seen interest climb, with an increase in recent trading volume of nearly 230% beyond what we have been seeing over the larger time frame.

The Company’s Chairman and CEO, Mr. Edwin Ng commented, “We are extremely pleased to have completed the negotiation process with the local Bank for the non-recourse credit facility.  We are also very fortunate to be supported by Gabriel Capital Ltd.’s equity investment in KPAY’s Preferred Stock, shares of which shall be issued upon receipt of the final HSBC bank guarantee.  We have put in place an equity financing structure to enable KPAY to be at the forefront of Indonesian growth in key business and financial sectors.”  Mr. Agoeng Noegroho, the Chief Investment Officer of the Singapore-based Gabriel Capital Ltd. stated “We view our $200 million investment commitment, of which this first tranche of $25 million will close upon the delivery of our collateral, as evidence of our belief in Indonesia’s growth and KPAY’s ability to invest in exciting US technologies suitable for integration into the rapidly growing South East Asia economy.” 

At this time, carrying a capital value in the market of $4.8M, KPAY has a store ($273K) of cash on the books, which stands against about $7.3M in total current liabilities. One should also note that debt has been growing over recent quarters. KPAY is pulling in trailing 12-month revenues of $806K. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 76%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $KPAY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $KPAY, either long or short, and we have not been compensated for this article.

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