MIAMI -- (BUSINESS WIRE) -- Net Element, Inc. (NASDAQ:NETE), 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 the Company has transferred its 10% interest in T1T Lab, LLC back to T1T,LLC, and as a result, Net Element is thereby relieved all of its commitments and obligations to T1T, including its obligation to commit $1,259,000 associated with that ownership interest.
Net Element was issued a 10% interest in T1T Lab pursuant to a contribution agreement reached between the companies in September 2013. As part of that agreement, Net Element contributed to T1T Lab all of its membership and participation interests in its subsidiaries Openfilm, LLC, Motorsport, LLC, Splinex, LLC, LegalGuru, LLC and Music 1, LLC (collectively, the "Divested Subsidiaries") and agreed to make a capital contribution to T1T Lab in the amount of $1,259,000 in exchange for its 10% interest in T1T Lab. With the dissolution of the agreement, the 10% ownership interest has been returned to T1T Lab and Net Element is relieved of all further liabilities and obligations to that entity. Additionally, Oleg Firer, CEO of Net Element has resigned from his position as executive of T1T Lab effective February 7, 2014 and Dmitry Kozko, President and Director of Net Element who formerly oversaw the Divested Subsidiaries, has resigned from Net Element as of February 8, 2014, to pursue other opportunities.
Additional information regarding Net Element International's divestiture may be found in Net Element International's 8K, which was filed with the Securities and Exchange Commission (SEC) on February 13, 2014 and may be obtained from the SEC's Internet website at http://www.sec.gov.
About Net Element (NASDAQ: NETE)
Net Element (NASDAQ: NETE) is a global technology-driven group specializing in mobile payments and value-added transactional services. The Company owns and operates a global mobile payments and transaction processing provider, TOT Group. TOT Group companies include Unified Payments, recognized by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012, Aptito, a next generation cloud-based point of sale payments platform, and TOT Money, which has a leading position in Russia and has been ranked as the #1 SMS content provider by Beeline, Russia's second largest telecommunications operator. Together with its subsidiaries, Net Element enables ecommerce and adds value to mobile commerce environments. Its global development centers and high-level business relationships in the United States, Russia and Commonwealth of Independent States strategically position the Company for continued growth. The Company has U.S. headquarters in Miami and headquarters in Moscow. More information is available at www.netelement.com.
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 or its business continues to grow. These forward-looking statements include, without limitation, the extent that the conveyance of its ownership interest in T1T Lab, LLC in return for absolution of all obligations to T1T Lab, LLC will benefit the company in the long term; and the extent that the resignation of Dmitry Kozko as President and Director of the Company may impact future operations on the company. 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; and (xi) local, industry and general business and economic conditions. 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.