Net Element announced it closed a $10 million credit facility from RBL Capital Group. This closing represents the second funding in the $30 million financing round that was announced by the company on April 22, 2014.
The $10 million credit facility extended to the company by RBL Capital triggered the conversion provisions of the first round convertible debt financing provided by Cayman Invest, converting its debenture to common shares of the company as of the date of this announcement.
The effect of the new $10 million credit facility and the Cayman Invest debt conversion is to significantly reduce the total outstanding debt of the company. The company will utilize $3 million of the $10 million credit facility to pay in full its loan obligations to MBF Merchant Capital, a loan that was recently restructured at a discount to the company.
“We are pleased to be supporting Net Element’s growth efforts,” said William W. Williams, speaking on behalf of RBL Capital. “Merchants and consumers will continue to shift to a cashless environment and we see Net Element as an emerging leader in mobile payments, value-added services and technologies.”
Net Element is a global technology group specializing in mobile payments and value-added transactional services.