Net Element, Inc. (NASDAQ: NETE) recently demonstrated the
immense market potential of its pending acquisition, PayOnline, when the
company announced the signing of a three-year payment processing contract with
the operator of a collection of international dating networks – including
AnastasiaDate, AmoLatina and AsianDate. With the Kazakhstan launch of PayOnline
still fresh on the minds of investors, this contract is expected to allow Net
Element to add at least $1.2 million in net revenues to its financial results
over the next three years.
The announcement of this added revenue came less than two
months after Net Element executed definitive documentation to acquire
PayOnline. Prior to the acquisition, PayOnline’s payment processing network
included more than 10 million active customers, as well as thousands of
merchants in the Russian Federation, Europe and Asia. Net Element’s ability to
quickly and efficiently expand upon this market penetration is a promising sign
for the company moving forward.
“This contract win demonstrates our ability to quickly
derive value from strategic acquisitions and partnerships,” Oleg Firer, chief
executive officer of Net Element, stated in a 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.”
In the first half of 2015, Net Element made significant
strides toward improving its balance sheet in order to promote sustainable
industry growth. In addition to securing financing of up to $24.5 million, the
company created the operational infrastructure that will be required to
accommodate future expansion efforts. In the coming months, Net Element will
shift its focus toward fully integrating PayOnline’s value-added technologies
into the company’s U.S. product offerings in an effort to become a premier
payments-as-a-service company with a centralized, omni-channel, global
platform.
Net Element’s recent financial progress should help the
company capitalize on its considerable market growth. In the first quarter of
2015, the company provided a preview of its potential by recording a 15 percent
year-over-year increase in gross revenues, and its efforts toward eliminating
cumbersome debt from its balance sheet should place the company into a
formidable position to realize continued financial improvement in the future.
For prospective shareholders, Net Element’s recent business activities could
provide an opportunity to realize improved returns moving forward.
For more information, visit www.netelement.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
