Financing Led by Company's Senior Management Team
Miami, Florida - (NewMediaWire) - September 16, 2015 - Net Element, Inc. (
As part of the insider financing, the Company sold 11,357,143 common shares to Kenges Rakishev, Chairman of the Company's board of directors; Oleg Firer, Company's CEO and director; Steven Wolberg, Company's Chief Legal Officer; William Healy, a director of the Company and certain other investors. The Company also issued to the investors options to purchase common shares. The shares, the options and the shares issuable upon exercise of the options are subject to Rule 144 restrictions. The net proceeds of the offering will be used to fund the Company's working capital.
"I am very pleased that management of the Company has participated in this financing," commented Oleg Firer, CEO of Net Element. "This transaction further highlights management commitment to the Company and its future."
Additional information regarding this financing may be found in Net Element's Current Report on Form 8-K, which was filed with the Securities and Exchange Commission (SEC) on September 16, 2014, and may be obtained from the SEC's Internet website at http://www.sec.gov.
About Net Element
Net Element, Inc. (
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 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) 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.