Net Element to Explore Strategic Alternatives for its Business to Unlock Shareholder Value
07 May 2020 - 1:30AM
via NEWMEDIAWIRE -- Net Element, Inc.
(NASDAQ: NETE) (“Net Element” or the “Company”), a
global technology and value-added solutions group that supports
electronic payments acceptance in a multi-channel environment
including point-of-sale (“POS”), e-commerce and mobile devices,
today announces that its Board of Directors has authorized the
Company to explore strategic alternatives for its business in order
to unlock shareholder value.
“Net Element has optimized operations company-wide
and implemented efficiencies, achieving cost savings. At the
same time, it appears that the public markets do not appropriately
recognize the value of our business. As a result, our Board
of Directors has decided to explore strategic alternatives to
further unlock value for its shareholders,” commented Oleg Firer,
Executive Chairman of Net Element.
As part of this process, the Company will evaluate
all potential options for its business, including sale, licensing
of technology, spin-offs or business combinations. There can
be no assurance regarding the timing or outcome of the strategic
alternatives review process. The Company does not intend to comment
further unless and until the Company’s Board of Directors has
approved a specific course of action or the Company has otherwise
determined that further disclosure is appropriate or required by
law.
About Net ElementNet Element, Inc.
(NASDAQ: NETE) operates a payments-as-a-service transactional
and value-added services platform for small to medium enterprise
("SME") in the U.S. and selected emerging markets. In the U.S. it
aims to grow transactional revenue by innovating SME productivity
services using blockchain technology solutions and Aptito, our
cloud-based, restaurant and retail point-of-sale solution.
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. Net Element was ranked as one of the fastest growing
companies in North America on Deloitte's 2017 and 2018
Technology Fast 500™. In 2017 we were recognized by South Florida
Business Journal as one of 2016's fastest-growing technology
companies. Further information is available
at www.NetElement.com.
Forward-Looking StatementsSecurities
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. 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 whether
the initiatives and cost saving measures implemented by the Company
will be a sufficient measure and whether the Company will be
successful in its pursuit of strategic alternatives . Additional
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; and (xii) 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, 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.
Contact:Net Element, Inc.+1 (786)
923-0502www.netelement.com Media@NetElement.com
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