Trunkbow International Holding reverse merges into Bay Peak 5 Acquisition Corp.

Trunkbow International Holdings has executed a reverse merger into a shell company, Bay Peak 5 Acquisition Corp., controlled by Baypeak LLC. The company is currently non-trading and doesn’t have any history with the SEC. Details on the transaction are sparce as well.[BANNER]

Trunkbow currently provides electronic mobile payment solutions in China’s province of Shandong. Upon the merger, Trunkbow also exercised $5.6 million worth of warrants that came along with the shell acquisition.

Funds for the merger were raised by Merriman Curhan Ford (Nasdaq: MERR) with VeriFone Holdings (Nasdaq: PAY), the provider of electronic payment solutions, acting as the leading entity in the fund raising process. The company has invested $5 million into Trunkbow as announced on February 11, 2010. The $5 million investment guaranteed VeriFone an 8.6% stake in the company. Full proceeds raised from multiple sources totaled $22.5 million.

Trunkbow has an aggressive expansion strategy in place, planning to have their Near-Field Communications technology integrated in 125,000 mobile payment terminals in China over the coming three years. To achieve their goals, the company is seeking partnerships with multiple Chinese telecom carriers. Naturally VeriFone is the preferred supplier of payment system technology to Trunkbow.

Investors cannot yet trade Trunkbow’s shares but hopefully the company will go public soon. Operating in China’s mobile phone market, the company automatically possesses great potential and with the recent fund raising it makes one curious about their financial state.

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