Factoring Agreement Will Support Technology Company's Growth and
Development of Its TOT Money Mobile Commerce and Payment Processing
Platform in Russia and Other Emerging Markets
MIAMI & MOSCOW--(BUSINESS WIRE)--
Net
Element International Inc. (NASDAQ:
NETE), a technology driven group in mobile commerce and payment
processing, as well as in entertainment and culture Internet
destinations in Russia and other emerging markets, today announced that
its mobile payment processing company, TOT
Money, has entered into a 300 million rubles (approximately $9.5
million) factoring agreement with Alfa-Bank,
Russia's largest private bank. The factoring agreement effective as of
September 28, combined with a credit facility of 300 million rubles
(approximately $9.5 million) that Alfa-Bank extended on August 17, will
help support the company's continued growth and development in mobile
commerce.
TOT Money, a platform that facilitates transactions via SMS on any phone
and mobile network in Russia, is expected to become the lead driver of
Net Element's mobile commerce payment processing division. Most
consumers today prefer mobile commerce because of the safety,
accessibility and convenience it provides.
As part of the factoring agreement, Alfa-Bank will serve as the
collector and processor of accounts receivables for TOT Money and will
provide TOT Money with financing to support its growth strategy. It will
enable Net Element to directly pay its transactional partners in the
value chain, significantly decreasing the time between the collection
and distribution of profits garnered from sales.
"There is significant demand for mobile payment processing in Russia's
mobile commerce marketplace, and we believe that TOT Money is ideally
positioned to capitalize on these unique market opportunities," said
Ilina Polina, Alfa-Bank's business development director.
Dmitry Kozko, Net Element's president, said, "This factoring agreement
will enable the team at Net Element International to take TOT Money's
business to the next level and become one of Russia's leading mobile
payment processing companies. We are positioning TOT Money to process up
to 600 million rubles per month in mobile payments and continue to
attract top customers as we build upon our mobile commerce and
payment-processing platform for Russia and other emerging markets.
"In addition to our relationship with the influential Alfa-Bank, our
agreements with the ‘Big Three' mobile carriers in Russia and our broad
network of partners, content providers and merchants will greatly
enhance our company's growth potential," Kozko added.
About Net Element International Inc. (NASDAQ:
NETE)
Net
Element International Inc. (NASDAQ:
NETE) is a technology driven group in mobile commerce and payment
processing, as well as in entertainment and culture Internet
destinations in Russia and other emerging markets. Its international
technology development centers, extensive global network and high-level
business relationships in Russia and the Commonwealth of Independent
States strategically position the company for growth in these markets
and beyond. Net Element International owns and operates a
mobile-commerce company, TOT Money, as well as several Internet
properties that create social and business communities in the
entertainment, music, motorsports and film industries. Net Element
International's portfolio includes: www.TOTmoney.ru; www.Motorsport.com; www.Openfilm.com; www.Music1.ru; www.ARLive.com and
www.Yapik.com.
For more information, visit www.NetElement.com.
About Alfa-Bank
Founded in 1990, Alfa-Bank
is Russia's largest private bank in terms of total assets, total equity,
customer accounts and loan portfolio. The full-service bank operates
in most sectors of the financial market, including retail and corporate
lending, investment banking, trade finance and asset management.
According to its audited IFRS financial statements for the full year
2011, the Alfa Banking Group, which comprises OJSC Alfa-Bank as well
as its subsidiary banks and financial companies, had total assets
of $31.4 billion, gross loans of $23.2 billion, and total equity
of $3.4 billion. Net profit after tax for 2011 amounted to $641 million.
The Alfa Banking Group's corporate and retail client base has grown
considerably during the past several years. As of January 2012,
Alfa-Bank Group serves approximately 55,800 corporate and 6.3 million
retail customers, while the branch network consists of 465 offices
across Russia and abroad, including a subsidiary bank in the Netherlands
and financial subsidiaries in the United States, the United Kingdom and
Cyprus. For more information, visit www.alfabank.com.
Forward-Looking Statements
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. These
forward-looking statements reflect Net Element International's (NEI) and
its management's current beliefs, expectations or intentions regarding
future events. Any statements contained in this press release that are
not statements of historical fact may be deemed forward-looking
statements. Words such as "will," "become," "enable," "may," "could,"
"should," "expect," "expected," "proposed," "contemplated," "plan,"
"project," "intend," "anticipate," "believe," "estimate," "predict,"
"potential," "continue," and similar expressions are intended to
identify such forward-looking statements. These forward-looking
statements include, without limitation, all statements and information
regarding the intent, belief or current expectation of NEI and its
management. 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 NEI and are difficult to
predict. Examples of such risks and uncertainties include, but are not
limited to: (i) TOT Money's borrowing capacity under its factoring
facility and/or credit facility with Alfa-Bank, which is subject to
change from time-to-time pursuant to the terms of such facilities; (ii)
adverse changes in the demand for mobile payment processing in Russia;
(iii) adverse changes in NEI's and/or TOT Money's relationships with
mobile carriers, lenders and other business partners; and (iv) adverse
changes in general business and economic conditions, particularly in
Russian and other emerging markets where NEI and TOT Money principally
operate. 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 each of Net Element International, Inc. and
Net Element, Inc. with the U.S. Securities and Exchange Commission (the
"SEC"), the definitive joint proxy statement/prospectus filed by Net
Element International, Inc. with the Securities and Exchange Commission
and future reports and other filings by Net Element International, Inc.
with the Securities and Exchange Commission. NEI anticipates that
subsequent events and developments may cause its views and expectations
to change. NEI assumes no obligation, and it specifically disclaim 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.
Roar Media
Tyler Sminkey, 305-403-2080, ext. 114
tyler@roarmedia.com
www.RoarMedia.com
Source: Net Element International Inc.
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