Net Element to Explore Strategic Alternatives for its Business to Unlock Shareholder Value
Net Element (NASDAQ: NETE) announces its Board of Directors has authorized a review of strategic alternatives to unlock shareholder value. The company has achieved operational optimizations and cost savings but believes the market undervalues its business. Options under consideration include potential sale, licensing of technology, spin-offs, or business combinations. The company has not set a timeline for this process and will provide updates as necessary. Net Element operates a payments-as-a-service platform and has been recognized for its growth in North America.
- Operational optimizations have led to cost savings.
- The exploration of strategic alternatives could unlock shareholder value.
- Public markets do not currently recognize the value of the business.
- Uncertainties regarding the outcome of the strategic alternatives review process.
MIAMI, FL, May 06, 2020 (GLOBE NEWSWIRE) -- 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 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 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 Statements
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. 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) 923-0502
www.netelement.com
Media@NetElement.com
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