Net Element, Inc. (NETE) Highlights Financial Progress in Re Net Element, Inc. (NETE) Highlights Financial Progress in Recent Business Update
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.
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