It’s been a busy week for
technology innovator Net Element as the company issued a shareholder update,
inclusive of the company’s recent financing of at least $10.5 million to
sustain further expansion initiatives, as well news that its pending acquisition
target has signed a contract to process transactions for several international
dating networks.
Net Element leverages its core
technology innovations and operational business partners to provide mobile
payments and value-added transactional services in emerging countries and in
the United States. To this accord, the company is continuously seeking out
growth opportunities.
In its recent news release, Net
Element defined its primary goal for the second half of 2015 as integrating
PayOnline’s value-added technologies with Net Element’s current U.S. offerings
to solidify its foothold as a premier payments-as-a-service company with a
centralized, omni-channel global platform.
Upon closing of the acquisition,
Net Element will be able to sell its mobile payment services to PayOnline’s
more than 10 million active consumers and thousands of merchants in the Russian
Federation, Europe and Asia.
“The acquisition of PayOnline
will be transformative for the Company not only as a profitable acquisition but
for the cutting edge payments tools it provides such as its recently announced
availability of an online transactional platform for iOS apps (iPhone and
iPad),” Net Element said in the news release.
PayOnline’s recent three-year
contract centers on a minimum processing commitment of $300 million in
transactions for social networks AnastasiaDate, AmoLatina and AsianDate, among
others. Net Element currently manages, operates and is in the process of
integrating the PayOnline group of companies pending closing of Net Element’s
acquisition of the company.
The acquisition will add to Net
Element’s current portfolio of subsidiaries, which include TOT Group, Inc., a
global mobile payments and transaction processing provider whose companies
include Unified Payments, Aptito and TOT Money, and emphasizes Net Element’s
ability to facilitate cross-border transactions through a single interface.
“This contract win demonstrates
our ability to quickly derive value from strategic acquisitions and
partnerships,” Net Element CEO Oleg Firer stated in the news release. “As we
emerge from a period of financial and business restructuring, we plan to see
more such value driving developments as we progress into our growth phase.”
The financial restructuring
mentioned by Firer, along with other achievements and the pending acquisition
of PayOnline, triggered a reiterated 12-month price target of $5.17 per share
by SeeThruEquity.
“Net Element has achieved several
important developments since our last update in March 2015. Most importantly, Net
Element made substantial progress shedding cumbersome debt on its balance sheet
and announced a new $24.5mn capital raise. While improving its financial
position, the company also reported double-digit annual growth in both 1Q15 and
fiscal 2014 results and announced several growth initiatives for 2015 and
beyond. The company also announced that it had executed definitive
documentation for the acquisition of PayOnline, a leader in online transaction
processing services and payment technology with over 10mn active consumers and
thousands of merchants in the Russian Federation, Europe and Asia. We are
reiterating our 12 month price target on NETE of $5.17 per share,” stated
SeeThruEquity CEO Ajay Tandon.
Net Element is quick on its feet
in taking advantage of opportunities that add momentum to grow revenues, by
attracting more merchants to its payments platform, contributing to its
overarching mission to become a competitive leader in mobile payments and
transactional services in target countries and the United States.
For more information visit
www.netelementinc.com
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