NEW YORK, January 30, 2019 /PRNewswire/ --
KinerjaPay Corp., a Delaware corporation (OTCQB: KPAY), a digital payment and e-commerce platform, ("KinerjaPay" or the "Company") announced today that the Company has filed a Form 8-K report with SEC updating the disclosure in the Company's Form 8-K filed with the SEC on January 8, 2019. The Company reported on the January 8, 2019 Form 8-K its acceptance of a subscription from a major Indonesian investor, the Wahana Group, for $200 million for newly authorized shares of Series F and Series G Convertible Preferred Stock, convertible at $1.80 per share, subject to a 9.99% blocker. The Company further reported that it expected to close the Wahana investment within 10 days.
However, due to the complexity of the United States Federal Bank Regulations, the Company is still in the process of establishing a new Business Bank Account to accommodate an investment of this size, which requires U.S. Banks to not only apply enhanced "Know Your Customer" rules but also "Proof of Funds Source" rules. Over the past two weeks, the Company's Executive Officers have met with several major Banks in New York to open one or more Business Bank Accounts for KinerjaPay, a public reporting company with the SEC, to facilitate the acceptance of the $200 million investment.
Since the adoption of the Patriot Act, and for sound reasons, U.S. Banking Regulations require significant additional Due Diligence as a prerequisite before opening a new Business Bank Account with a deposit of this size, with a greater degree of background checks, which we now understand may take up to 14 additional business days or more. To date, the Company's Executive Officers have provided the several U.S. Banks with all documents believed to be necessary, including the Proof of Funds from our investor from a major world-wide bank funds from London, as proof of the investor's ability to fund this investment in our securities.
The Company CFO, Mr. Windy Johan, commented about the current status of opening the new Bank Account(s) stating: "Because of the size of this new investment from an Indonesian investor, we have been engaged in providing several U.S. Banks in confirming that the investment funds were from bona fide sources and Proof of Funds from a major international bank with headquarters in London and world-wide. The Due Diligence process resulted in the delay from our original estimate of 10 days. We believe that we are well-along with satisfying the Due Diligence required to establish one or more new banking relationships to accept the SWIFT transfer from our investor for $200 million."
Mr. Edwin W. Ng, the Company's CEO & Chairman, also commented that, "We are in the process of opening Business Bank Accounts to accommodate the $200 million international investment." Mr. Ng further commented that, "We want all of our investors and the public markets to understand that the Company is following proper U.S. banking procedures in order to maintain our compliance in all aspects with U.S. Federal Banking Regulations."
When asked to comment about the ongoing process of funding its investment into KinerjaPay, a representative from Wahana Group, Mr. Rio Chandranegara, commented, "We remain confident and committed to subscription arrangement with and our belief in the potential of KinerjaPay. We understood that KinerjaPay's Executive Officers are expediting our investment by providing the U.S. Banks with all supporting documents in order to accommodate our investment as quick as possible, and we are here to fully-support KinerjaPay until it is done."
The Company expects to conclude the investment from Wahana Group and receive the committed funding within the next 14 to 30 business days.
KinerjaPay enables consumers to "Pay, Play and Buy" through its secure web portal and mobile applications. Based in Indonesia, the Company provides easy and convenient payment solution while shopping online at its marketplace platform. With its current omni-channel 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.
Notice Regarding Forward-Looking Statements
This press release may contain forward-looking statements, about KPAY's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, KPAY or its representatives have made or may make forward-looking statements, orally or in writing.
Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "intend," "plan," "may," "should" or "anticipate" or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by KPAY with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of KPAY's authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause KPAY's actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause KPAY 's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in KPAY 's filings with the SEC. In addition, KPAY operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. KPAY does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. Please see the risk factors associated with an investment in our securities which are included in our Annual Report on Form 10-K as filed with the SEC on April 20, 2018 and most recently in our Registration Statement on Form S-1/A filed with the SEC on December 21, 2018, pursuant to which we are offering 300,000 Shares of 11% Series C Cumulative Redeemable Perpetual Preferred Stock at $25.00 Per Share.
For more information, please visit our website http://www.kinerjapay.co. There you will find access to all of our past press releases and SEC filings regarding the activities discussed in this letter.
SOURCE KinerjaPay Corp.