Net Element, Inc. (NASDAQ: NETE) issued a response to
shareholder inquiries on Tuesday, addressing concerns regarding the company’s
recent decline in share prices and the resulting non-compliance notice received
from NASDAQ. In particular, the company highlighted its primary goals for the
second half of 2015 following the successful negotiation of up to $24.5 million
in financing in recent months.
In May, Net Element executed definitive documentation to
acquire PayOnline, a leader in online transaction processing services and
payment technology. Management suggests that this acquisition will be
transformative for the company moving forward as both a profitable subsidiary
and an established platform for growth in the online payments industry. Earlier
this month, the company leveraged this platform by launching its online
payments processing business in Kazakhstan through a contract with the
country’s largest online events ticketing website and second largest online
merchant.
“Net Element’s facilitation of this banking relationship
with its pending acquisition PayOnline is an example of how we intend to grow
in emerging markets, where we can nimbly deliver those services best suited for
a given market,” Oleg Firer, chief executive officer of Net Element, stated in
a news release. “We expect this agreement to accelerate our growth in the
region.”
The company has made similar strides toward sustainable
growth in the U.S. market through the launch of three new programs to provide financing
solutions and sales incentives to sales partners in order to help accelerate
business development. With this new recruitment program in place, Net Element
will look to aggressively expand its domestic footprint by facilitating the
business success of its partners.
This progress, in addition to persistent growth in the
Russian mobile payments market, has allowed the company to improve its
financial results in recent months. In the first quarter of 2015, Net Element
reduced its year-over-year net loss by more than 63 percent through its
dedication to the elimination of debt over the past two years. These savings,
along with the company’s newly secured growth capital, should allow Net Element
to continue implementing its strategic growth plans.
For more information, visit www.netelement.com
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