Independent equity research firm SeeThruEquity
this morning reiterated its price target for and issued a positive Q2 2014
update on Net Element, a global financial company specializing in mobile
payments and transactional services in emerging countries and in the United
States. The research firm highlights the company’s first quarter of
profitability, significant debt reduction, extended financing and recent board
expansion.
“We continue to be impressed with NETE’s
execution and remain confident about NETE’s growth potential over the next 2-3
years,” Ajay Tandon, CEO of SeeThruEquity stated in the update. “On July 2,
2014, NETE announced the closing of a $10mn credit facility from the payments
industry-leading lender, RBL Capital Group, LLC. NETE also continues to expand
its board with the inclusion of industry veterans … Our price target remains
$3.47 per share.”
The price target is more than double Net
Element’s current trade around $1.51.
The research firm also noted Net Element’s
first-quarter performance in which the company reported its first quarter of
profitability, recording Q2 net income of $1.3 million, or $0.04 per share, and
a reduction of its liabilities by 40% to $22.8 million.
In July 2014, RBL Capital extended Net Element
an additional credit facility under which it can borrow up to $10.0 million,
representing the second funding in the $30 million financing round that was
announced in April 2014.
“We believe this new financing will allow NETE
to accelerate its growth initiatives in Russia and other emerging markets,”
stated SeeThruEquity.
The research firm also highlighted Net
Element’s recent appointments of Drew Freeman and William Healy to its board of
directors. Freeman has more than 30 years of electronic payments and merchant
services industry experience. Healy brings to the table more than 24 years of
merchant financing and electronic payments industry experience. He currently
serves as the president of Funds4Growth, a leading investment firm focused on
financing of payment service providers in the United States. Since launching
Funds4Growth, Healy has successfully structured and financed in excess of $100
million in merchant base loans.
To view the entire update visit:
http://www.seethruequity.com/#!nete/c1e5c
For more information visit www.netelement.com
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