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This is why Peak management is so confident that this newly formed subsidiary will approach $100 million CAD in revenue next year. The subsidiary may be new, but the bulk of the revenue will come from existing business, not from speculative revenues of the Plastic Bank startup. However, Banlan projects revenues generated by the Plastic Bank to surpass those generated by Peak China's other activities within the first 2 to 3 years of operations of the Plastic Bank.Why do Banlan and Peak want to do this dealWhile the development of the subsidiary for the Plastic Bank makes sense, one might wonder why Banlan would be so willing to give away 10 15% of its existing business to the Peak subsidiary where non Banlan PKK shareholders will now have access to half of this revenue.

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