Alternet Systems Announces $6.5 Million Asset Sale of Utiba Americas, Its
Mobile Financial Services Subsidiary, Subject to Shareholder
Company Also Announces the Restructuring of Its Cyber-Security
MIAMI, FL -- (Marketwired) -- 11/20/13 -- Alternet Systems, Inc.
(OTCQB: ALYI) ("Alternet" or the "Company"), an investment holding
company focused on the complimentary, high-growth markets of
cyber-security and mobile financial services, today announced the
asset sale of its mobile financial services subsidiary and the
restructuring of its mobile cyber-security subsidiary.
As announced yesterday in a Form 8-K on file with the Securities and
Exchange Commission, the Company entered into an Asset Purchase
Agreement. Effective October 15, 2013, the Company will sell all of
the business and assets of its mobile financial services subsidiary,
Alternet Systems Transactions ("ATS" or "Utiba Americas"), to its
joint venture partner, Utiba Pte., a leading mobile payment software
developer. Utiba Pte. will purchase the assets from the Company for
an approximate total value of six and a half million ($6,500,000)
paid over three years. Management is expected to remain in place
following the transition.
Utiba Americas has seen significant success this year marked by
growth in its customer base as compared to the prior year, as well as
solid sales. Year-to-date sales have remained in-line with management
expectations and are on target to reach end of the year milestones.
Mr. Henryk Dabrowski, CEO of Alternet Systems, commented, "Alternet's
core focus on capturing and converting growth and opportunities
within the global mobile phone market remains steadfast. As disclosed
yesterday, Utiba is seeking to purchase our stake in Utiba Americas.
With the industry seeing widespread consolidation, entering into this
purchase agreement now presents us with the strategic opportunity to
not only quickly monetize and earn a substantial return on our
initial investment, but also to obtain the financing necessary to
solidify the Company's financial position and pursue our next revenue
generating opportunity and/or acquisition without delay. We believe
this is the right move for the Company and our shareholders, and are
confident in our ability to continue capitalizing on our investments
in the time ahead."
The transaction is subject to shareholder vote and approval. The
Company will be filing Preliminary Proxy Statement and notice of
Meeting of Shareholders immediately, and scheduling a Shareholders
Meeting to vote on the transaction soon thereafter. If approved, the
transaction could close as soon as Q1 2014.
Mr. Dabrowski continued, "Separate from the sale of Utiba Americas,
we continue our focus on augmenting revenue with ancillary streams
stemming from our cyber-security subsidiary, International Mobile
Security (IMS), a provider mobile and digital security solutions to
law enforcement agencies. To this effort, we've started restructuring
the Company to position it for organic growth. We are actively
recruiting an experienced management team to take operational
control, as well as tapping current and opening new lines of
business. All initiatives are of priority to me and my team; and we
will notify the investment community on our progress in these areas
as we are able to. We are excited about what the future has in store
for the Company and the shareholders, and will update the market
For additional information on Alternet Systems Inc. and its
subsidiaries, please visit www.sec.gov.
ABOUT ALTERNET SYSTEMS INC.
Alternet Systems Inc. (OTCQB: ALYI), a
US corporation headquartered in Miami, Florida, is an investment
holding company focused on the complimentary, high-growth markets of
cyber-security and mobile financial services. Through its
subsidiaries, Alternet captures and converts the extraordinary growth
and opportunities surrounding the explosion of mobile phones
worldwide. Its cyber-security subsidiary, International Mobile
Security (IMS), provides mobile and digital security solutions to law
enforcement agencies. Alternet's mobile financial services
subsidiary, Utiba Americas, is a joint venture with Utiba Pte, the
leading developer of mobile payment software solutions. Utiba
Americas is deploying mobile financial services solutions for mobile
network operators, financial institutions and third party payment
service providers throughout the Americas region. More information
about Alternet and its subsidiaries can be found at
www.alternetsystems.com and by following the company on Twitter
For further information about this release contact Investor Relations
at 1-888-823-8494, 800-631-8127 and/or via email at
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Certain statements in this news release may
contain forward-looking information within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. All statements, other than statements of fact, included
in this release, including, without limitation, statements regarding
potential future plans and objectives of the Company, are
forward-looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.
Investor Relations Contact at Alternet:
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