- Extends loan to May 20, 2021, can take monthly advances up to $1 million
- Proceeds to be used for retirement of debt, general working capital
- North American Transactions segment jumps 40% in leading the way for NETE’s $13.6 million revenues in 1Q17
Net Element, Inc. (NASDAQ: NETE) has successfully converted its $2 million term loan into a $2.5 million revolving loan, which enables NETE and its subsidiaries to take advances of up to $1 million every calendar month. The loan date was also extended to May 20, 2021, from the original date of May 20, 2019.
NETE is a global financial company that supports other firms with a cloud-based system of accepting electronic payments in an omni-channel environment. The company has three segments: North American Transaction Solutions, Mobile Payment Solutions and Online Payment Solutions. A growing percentage of its revenue comes from the North American segment, which generated 78% of total company sales in 2016 and $10,964,919 of NETE’s 1Q17 $13,561,941 revenues. This represented a 40% jump in sales for the North American segment from the prior year. The company attributed the increase to organic growth among its merchants.
In an SEC 8K filing (http://nnw.fm/Qpf6i), NETE disclosed that the loan amendment was finalized June 27, 2017, with lender Priority Payment Systems LLC and NETE subsidiaries TOT Payments LLC, TOT New Edge LLC, Process Pink LLC and TOT FBS LLC.
As part of the agreement, NETE agreed to use the proceeds to meet its debt obligations from an acquisition, an ancillary agreement and for working capital. Its obligations under the agreement as of the amendment date totaled $1,925,967, according to the loan.
The company reported revenues of $54.3 million in 2016 and sales for the three months ended March 31, 2017, at $13,561,941, compared to $11,261,059 for the same period of the prior year.
NETE is seeking to generate more revenues in the future by launching a nationwide sales campaign for Aptito, its cloud-based point-of-sale system, with a special $1,200 incentive to agents and dealers per placement. Aptito is designed by NETE as a management tool to increase retention rates and sales productivity in the restaurant and retail industries. It also features a wide array of business management tools.
For more information, visit the company’s website at www.NetElement.com
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