Net Element, Inc. (NETE) (“Net Element” or the “Company”), a technology-driven group specializing in mobile payments and value-added transactional services in emerging countries and in the United States, is pleased to announce that it has entered into a debt exchange agreement with Crede CG III, Ltd. (“Crede”), a wholly owned subsidiary of Crede Capital Group, LLC. Under the agreement, the Company immediately eliminated $15,876,860 of indebtedness under certain promissory notes, which will be reflected in Net Element’s quarterly financial results for the period ending September 30, 2014. Crede paid more than $15 million to the Company’s note holders to acquire such promissory notes. After acquiring the promissory notes, Crede exchanged them for Company common stock. Terren Peizer, Chairman of Crede Capital Group, Peizer’s personal investment vehicle, commented, “We are delighted to provide the capital to strengthen Net Element’s balance sheet, and provide the growth capital for the company to execute on its plan. On the heels of Apple’s foray into mobile payments, the industry is an exciting place to allocate capital.”

“In addition to saving on the financing expenses associated with holding high-interest loans, we have freed up a significant amount of cash flow and strengthened our balance sheet by replacing debt with equity. The increased financial flexibility provided by this transaction positions us to take advantage of growth opportunities and partnerships in promising areas such as mobile payments,” said Oleg Firer, CEO of Net Element.

The transaction is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to Section 3(a)(9) of the Securities Act. 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 15, 2014, and may be obtained from the SEC’s Internet website at

Leave a Reply