MIAMI, FL--(NewMediaWire- May 4, 2016) - Net
Element, Inc. (NASDAQ: NETE)
("Net Element" or the "Company"), a provider of global mobile
payment technology solutions and value-added transactional
services, announced today that it has completed the closing of a
renewal and increase to $15 million of the credit facility from
payments industry-leader lender, RBL Capital Group, LLC ("RBL
Capital") and entered into a debt exchange agreement ("Exchange
Agreement") with Crede CG III, Ltd. ("Crede"), a wholly owned
subsidiary of Crede Capital Group, LLC. Under the Exchange
Agreement, the Company has the ability to exchange up to $5 million
of indebtedness under certain promissory notes through December 31,
2016.
The Company continues to grow rapidly with 89.5% growth in
revenue in 2015 over the prior year. The $15 million credit
facility extended to the Company by RBL Capital coupled with the
debt exchange will be used to accelerate the Company's organic and
acquisition growth initiatives. This $15 million credit facility
replaces the Company's $10 million credit facility with RBL Capital
that has expired.
In May 2015, the Company announced that it had partnered with
RBL Capital to create Unified Prosperity Financing, a financial
facility aimed at fueling the Company's sales partner's growth
initiatives by allocating up to $50 million for merchant portfolio
financing.
"RBL Capital is pleased to have this opportunity to support Net
Element's next phase of growth given the company's proven growth
over the past few years, highly efficient merchant acquisition
capabilities, technological advancements and strong management
team," commented William W. Williams, speaking on behalf of RBL
Capital. "Net Element is poised for growth and RBL Capital is
excited to be a part of this growth."
Pursuant to the terms and conditions of the Exchange Agreement,
the Company will have the sole option to require Crede to exchange
the referenced debt in tranches of $100,000 (such tranche amount
could be increased or decreased subject to Crede's consent) for
shares of common stock of the Company on the terms and conditions
set forth in the Agreement, each by providing three business days'
notice to Crede prior to each exchange.
"This financing will accelerate our growth initiatives as we
expand our presence in the United States and selected emerging
markets," commented Oleg Firer, CEO of Net Element. "We are pleased
to have transacted with Crede and to have the continued support of
RBL Capital, which has been an integral partner in growing our
business over the past several years."
Additional information regarding these financings and the terms
and conditions of these agreements may be found in Net Element's
Current Report on Form 8-K, which was filed with the Securities and
Exchange Commission (SEC) on May 3, 2016 and May 4, 2016, and may
be obtained from the SEC's Internet website at http://www.sec.gov.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About Crede Capital
Crede Capital Group, LLC ("Crede") is a family office based in
Los Angeles, New York, Beijing and Singapore. Crede has completed
more than 100 investments in eleven countries on four continents,
providing both growth capital as well as business support to
emerging growth companies. More information is available
at www.credecg.com.
About Net Element
Net Element, Inc. (NASDAQ: NETE)
operates a payments-as-a-service transactional and value-added
services platform for small to medium enterprise ("SME") in the US
and selected emerging markets. In the US it aims to grow
transactional revenue by innovating SME productivity services such
as its cloud based, restaurant point-of-sale solution Aptito.
Internationally, Net Element's strategy is to leverage its
omni-channel platform to deliver flexible offerings to emerging
markets with diverse banking, regulatory and demographic conditions
such as UAE, Kazakhstan, Kyrgyzstan and Azerbaijan where
initiatives have been recently launched. Further information is
available at www.netelement.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any statements contained in this press release that are
not statements of historical fact may be deemed forward-looking
statements. Words such as "continue," "will," "may," "could,"
"should," "expect," "expected," "plans," "intend," "anticipate,"
"believe," "estimate," "predict," "potential," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, whether the enhanced debt facility from RBL or the
proposed pay down of the debt on the terms agreed to by the Company
will positively impact the Company and its shareholders, whether
Net Element can secure any additional financing and if such
additional financing will be adequate to meet the Company's
objectives. All forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements, many of which are generally outside the control of Net
Element and are difficult to predict. Examples of such risks and
uncertainties include, but are not limited to: (i) Net Element's
ability (or inability) to obtain additional financing in sufficient
amounts or on acceptable terms when needed; (ii) Net Element's
ability to maintain existing, and secure additional, contracts with
users of its payment processing services; (iii) Net Element's
ability to successfully expand in existing markets and enter new
markets; (iv) Net Element's ability to successfully manage and
integrate any acquisitions of businesses, solutions or
technologies; (v) unanticipated operating costs, transaction costs
and actual or contingent liabilities; (vi) the ability to attract
and retain qualified employees and key personnel; (vii) adverse
effects of increased competition on Net Element's business; (viii)
changes in government licensing and regulation that may adversely
affect Net Element's business; (ix) the risk that changes in
consumer behavior could adversely affect Net Element's business;
(x) Net Element's ability to protect its intellectual property;
(xi) local, industry and general business and economic conditions;
(xii) the Company's issuances of the Company's common stock from
time to time in exchange for retiring the Company's debt may cause
substantial dilution to our existing stockholders and the sale of
the shares of our common stock acquired by Crede in exchange for
our debt could cause the price of our common stock to decline;
(xiii) adverse effects of potentially deteriorating U.S.-Russia
relations, including, without limitation, over a conflict related
to Ukraine, including a risk of further U.S. government sanctions
or other legal restrictions on U.S. businesses doing business in
Russia. Additional factors that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual
report on Form 10-K and the subsequently filed quarterly reports on
Form 10-Q and current reports on Form 8-K filed by Net Element with
the Securities and Exchange Commission. Net Element anticipates
that subsequent events and developments may cause its plans,
intentions and expectations to change. Net Element assumes no
obligation, and it specifically disclaims any intention or
obligation, to update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by law.