NEW YORK, Jan. 22, 2019 /PRNewswire/ -- KinerjaPay Corp., a Delaware corporation (OTCQB: KPAY), a digital payment and e-commerce platform, ("KinerjaPay," "KPAY" or the "Company") is issuing this press release in response to an inquiry by the OTC Markets regarding promotional activity of the Company and its common stock which the Company first became aware of on January 16 and 17, 2019, during which the Company was one of the many public Companies making presentations at 2019 Wall Street Conference in Palm Beach, Florida.
Specifically, it came to our attention that Cashflow Heaven Publishing had issued to its subscribers on January 16, 2019 (neither the Company nor any of its principals are subscribers to Cashflow Heaven) an email about KPAY, reporting that the Company had filed a Form 8-K on January 8, 2019 which included a press release, disclosing the following: (i) that the Company had received a subscription for $200 million from a major Indonesian entity for shares of a newly authorized Series F and Series G Preferred Stock, convertible at an average of $1.80 per share, which release also contained other details about the Series F and G Preferred Stock; (ii) the Company's planned payday lending program for Indonesia, that permits interest at the rate of 33% per month; and (iii) the Company's planned use of proceeds from the $200 million subscription, to fund its peer-to-peer lending operations, potential acquisitions and strategic investments in Indonesia, among other disclosure, all of which is true and correct.
The principal of Cashflow Heaven was present at 2019 Wall Street Conference and was only first introduced to Mr. Edwin W. Ng, KinerjaPay's CEO and Chairman, at a reception held by KinerjaPay during the evening of January 16, 2019. In fact, KinerjaPay has never engaged Cashflow Heaven or its principal nor has it ever issued and shares or other securities or paid any compensation of any kind to Cashflow Heaven or its principal. Neither the Company nor its officer(s) were involved, directly or indirectly, with the creation, distribution, or payment of the promotional materials published by Cashflow Heaven or any other party, for that matter.
While KinerjaPay is aware that the promotions by Cashflow Heaven may have had an impact on the trading activity and price of the KPAY shares on the OTCQB, in fact, the trading volume in KPAY and the share price began to increase from $0.26 on January 8, 2019, the date the Company filed its Form 8-K reporting the $200 million investment, to $0.64 on January 15, 2019, with a volume of approximately 586 million shares, the day after the Company filed the Form 8-K with its PowerPoint Presentation for the 2019 Wall Street Conference, which included, among other disclosure, the Company's plan to invest up to $150 million in potential mergers and acquisitions. Nevertheless, KinerjaPay has no agreements nor has it conducted any negotiations with any persons or entities to invest in specific companies, consummate any mergers or make any acquisitions other than those previously announced.
The Company acknowledges that the unpaid promotions by Cashflow Heaven on January 16 and January 17, 2019, that occurred simultaneous with the Company's reception in Palm Beach during the evening of January 16, 2019 and its Presentation at the 2019 Wall Street Conference in Palm Beach on January 17, 2019, was, in fact, a likely factor for the increase in trading volume to approximately 1 million shares and a closing price of $0.87 on January 17, 2019. However, the Company firmly believes that this increase in investor activity, trading volume and share price increase, were primarily a result of the Company's recently announced $200 million investment subscription and its presentations at 2019 Wall Street Conference. https://finance.yahoo.com/quote/KPAY?p=KPAY&.tsrc=fin-srch
We became aware that the Company's security has been flagged as 'Stock Promotion' status on the OTCQB market on January 18, 2019, immediately after the Company has attended a yearly investor and public company conference, called the 2019 Wall Street Conference, at Mar-a-Lago, Palm Beach, Florida, on January 16 and 17, 2019.
After inquiry by the Company, neither its management, directors and/or control persons (defined as shareholders owning 10% or more of the Company's securities), or any third-party service providers have, directly or indirectly, been involved in any way, including payment of a third-party, with the creation, distribution, or payment of promotional materials related to the Company and its securities. Furthermore, after inquiry of management, the directors, control persons, and any third-party service providers, the Company, its officers, directors, any controlling shareholders, or any third-party service providers, have sold or purchased the Company's securities within the past 90 days.
During the presentation at 2019 Wall Street Conference, the Company's CEO & Chairman, Mr. Edwin W. Ng, presented the Company's roadmap using the materials prepared by the Company's internal team in the form of a PowerPoint Presentation. However, as part of our Good Corporate Governance Practices, we would like to bring to the attention of the investing public and others that the Company has never, at any level, tried to encourage the anyone to purchase the Company's securities under any promises or expectations of returns.
We would also like to take this opportunity to assure all of our investors and supporters in the market that any materials being published by the Company, including all reports, registration statements and other filings with the United States Securities and Exchange Commission ("SEC"), and all information published in the Company's Press Releases, are true and correct in all material respects.
The Company has never paid, either directly or indirectly, any third-party service provider(s) to create and/or distribute any promotional or other materials recommending the purchase of the Company's securities. It is our responsibility as a current, reporting company with the SEC and a publicly-traded company with shares subject to quotation on the OTCQB, to make full, complete and accurate information regarding the Company in every report, release and publication and including the mandatory "Notice Regarding Forward-Looking Statements." We are also aware of our obligation to publish reports or issue releases if we become aware that third-parties are publishing materially false and misleading information regarding the Company.
Also, it is equally important for the general public to know that the Company prohibits its officers, directors, and any affiliated persons to purchase the our securities prior to any major the announcement due to our strict adherence to the anti-insider trading policy, nor can such person disseminate material, non-public information about the Company to anyone, other than those persons, such as attorneys and auditors, who have fiduciary duties to the Company and under law not to use or exploit such material, non-public information.
On behalf of our Company's Management, we would like to conclude this release by expressing our appreciation to our loyal investors, customers, partners and shareholders who have believed in the Company and its leadership under our CEO and Chairman, Mr. Edwin W. Ng, and their continued faith in our growth as one of the leading players in Mobile Payment and eCommerce industry in Indonesia. We truly hope that the Company will continue to perform or even undergo transformational steps as it finalizes the major investment deal in the days and weeks to come.
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.