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NETE Eliminates $15+ Million in Debt with New Debt Exchange Agreement
Today before the opening bell, Net Element announced its entry into a debt exchange agreement with Crede CG III, Ltd., a wholly owned subsidiary of Crede Capital Group, LLC. With the agreement, Net Element immediately eliminated $15,876,860 of indebtedness under certain promissory notes. This balance sheet development will be reflected in Net Element’s quarterly financial results for the period ending September 30, 2014. In exchange, Crede paid more than $15 million to Net Element’s note holders for such promissory notes. Upon acquiring them, Crede exchanged them for common stock in Net Element.
“In addition to saving on the financing expenses associated with holding high-interest loans, we have freed up a significant amount of cash flow and strengthened our balance sheet by replacing debt with equity. The increased financial flexibility provided by this transaction positions us to take advantage of growth opportunities and partnerships in promising areas such as mobile payments,” said Oleg Firer, CEO of Net Element.
Additional information regarding the financing can be found in Net Element’s Form 8-k, which Net Element filed with the SEC on today, September 15, 2014.
Net Element is a global technology-driven group specializing in mobile payments and value-added transactional services. The Company owns and operates a global mobile payments and transaction processing provider, TOT Group.
TOT Group’s companies include: Unified Payments, recognized by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012; Aptito, a next-generation, cloud-based point-of-sale payments platform; and TOT Money, which has been ranked as the #1 SMS content provider by Russia’s second-largest telecommunications operator.
For more information, visit: www.netelement.com
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