(NETE) SeeThruEquity Issues Company Update, Highlights New Products & Partnerships

NEW YORK, NY / June 11, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a company update on Net Element, Inc. (NASDAQ: NETE).

The note is available here: NETE Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

“Net Element has achieved several important developments since our last update in March 2015. Most importantly, Net Element made substantial progress shedding cumbersome debt on its balance sheet and announced a new $24.5mn capital raise. While improving its financial position, the company also reported double-digit annual growth in both 1Q15 and fiscal 2014 results and announced several growth initiatives for 2015 and beyond. The company also announced that it had executed definitive documentation for the acquisition of PayOnline, a leader in online transaction processing services and payment technology with over 10mn active consumers and thousands of merchants in the Russian Federation, Europe and Asia. We are reiterating our 12 month price target on NETE of $5.17 per share,” stated Ajay Tandon, CEO of SeeThruEquity.

Additional highlights of the note are as follows:

Recent results show continued growth

Net Element reported 1Q15 and fiscal 2014 results that demonstrated continued growth and reduced losses. 1Q15 revenues of $5.5mn were up approximately 15% from $4.8mn in 1Q14, with YoY growth rates accelerating from 13% annual growth in 2014. Net loss narrowed from ($3.6mn) in 1Q14 to ($2.2mn) in 1Q15, with 1Q15 EPS improving to ($0.05). This was a continuation of improving profitability for the company, as fiscal 2014 EPS narrowed to ($0.27) versus ($1.70) in the year ago period.

Improved balance sheet a platform for future development

We have been impressed at Net Element’s ability to grow its top line at double-digit percentages while de-leveraging financial risk. Over the last five quarters the company has reduced debt outstanding from approximately $31mn at the end of fiscal 2013 to just $4.1mn at the end of 1Q15. Further, Net Element announced a key strategic financing on May 1, 2015. Net Element entered into an agreement to raise up to $24.5mn in two transactions comprising a mix of Series A 9% Preferred Stock and convertible debt plus warrants. We see the announcement as a significant milestone for the company – one that we believe enabled the acquisition of mobile payment technology innovator PayOnline, while also providing growth capital.

New products and partnerships set the stage for growth

Net Element also announced several partnerships, which we believe have the potential to accelerate growth. First the company formed a joint venture in the UAE, New Elements LLC, in which UAE-based partners will finance the company in exchange for access to market Net Element’s technology and brand name in Indian and the GCC region. Net Element will hold a 20% interest in the JV, providing upside potential without drawing resources from the company’s core business. The company also announced a technology partnership with Italy-based TAS Group to develop Europay, Mastercard and Visa (EMV) chip enabled solutions, card management systems, and mobile payment systems for the US and Latin America, as well as a merchant portfolio financing deal with RBL Capital, which should allow its sales partners to accelerate their market penetration.

Please review important disclosures on our website at www.seethruequity.com.

About Net Element, Inc.

Net Element (NASDAQ: NETE) is a global payments-as-a-service, technology provider with an integrated mobile and transactional services platform serving millions of emerging market clients. Its wholly owned subsidiary, TOT Group operates Unified Payments, a U.S. focused transaction processing and value-added services brand, Aptito, a next generation, cloud-based point of sale payments platform and TOT Money, a leading mobile payments service provider that is gaining significant traction in the mobile payments market in Russia and for two consecutive years, has been ranked in the Top 3 mobile payments providers by Beeline, Russia’s second largest telecommunications operator.

Further information is available at www.netelement.com.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com