Alternet Systems Announces $6.5 Million Asset Sale of Utiba Americas, Its Mobile Financial Services Subsidiary, Subject to
Alternet Systems Announces $6.5 Million Asset Sale of Utiba Americas, Its Mobile Financial Services Subsidiary, Subject to Shareholder Approval
Company Also Announces the Restructuring of Its Cyber-Security Subsidiary, IMS
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 throughout it."
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 www.twitter.com/alternetsystems.
For further information about this release contact Investor Relations at 1-888-823-8494, 800-631-8127 and/or via email at firstname.lastname@example.org.
"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: Rich Kaiser 1-800-631-8127 1-888-823-8494 email@example.com