NEW YORK, Jan. 22, 2016 /PRNewswire/ -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) ("Elephant Talk" or the "Company"), a global provider of Software Defined Network (SDN) platforms and cyber security solutions, for primarily Mobile Network Operators, today announced receiving a $500,000 advance, structured in the form of a loan, which, upon completion of due diligence by the potential buyer of ValidSoft Limited, the Company's wholly owned subsidiary, such funds may be applied towards the final purchase price of ValidSoft.
Hal Turner, Executive Chairman of the Board of Elephant Talk Communications, commented, "After receiving interest from multiple parties, we are pleased to have reached this stage with a potential buyer of ValidSoft, resulting in $500,000 of initial loan proceeds, with the potential for an additional $1.5 million advance also being made available. While there can be no assurances that the sale of ValidSoft Limited will be completed with this potential buyer, we are pleased with the progress we have made thus far and are working towards finalizing this transaction as soon as possible. As we have mentioned previously to our shareholders, our main focus in the short term, is securing the appropriate capital structure for our core business so that we may stabilize our operations financially to better grow Elephant Talk."
In addition to the principal amount of $500,000, the Company may receive an additional $1,500,000 advance from the potential buyer. In the event ValidSoft Limited is sold to the potential buyer, the aggregate loan of $2,000,000 shall be applied toward the purchase price to be paid. In the event the potential buyer does not fund the additional $1,500,000 by January 25, 2016, the Company shall convert the initial $500,000 received to an unsecured subordinated convertible promissory note, which will be convertible into shares of common stock of the Company at $0.30 per share as well as a five-year warrant to purchase additional common shares of the Company at $0.45, subject to certain exceptions. There is no assurance that the Company will consummate the proposed transaction with the potential buyer for ValidSoft Limited or receive the additional $1,500,000 loan from such buyer.
About Elephant Talk Communications Corp.:
Elephant Talk Communications Corp. (NYSE MKT: ETAK) is a global provider of mobile proprietary Software Defined Network Architecture (ET Software DNA® 2.0) platforms for the telecommunications industry. The Company empowers Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), Enablers (MVNEs) and Aggregators (MVNAs) with a full suite of applications, reliable industry expertise and high quality customer service without the need for substantial upfront investment. Elephant Talk counts several of the world's leading MNOs and technology companies amongst its customers and partners, including Vodafone, T-Mobile, Zain, HP and Affirmed Networks. Visit: www.elephanttalk.com.
About ValidSoft UK Ltd.:
ValidSoft, a subsidiary of Elephant Talk Communications Corp., secures transactions using personal authentication and device assurance. We enable our customers to enhance their security while improving their user experience, utilizing our multi-factor authentication platform, Voice Biometric engine and Device Trust technology, all of which may be used as 'stand-alone' or integrated into multi-vendor solutions. ValidSoft serves multiple clients across the financial services, government and enterprise sectors and is the only company to have been granted four European Privacy Seals, reflecting its commitment to strong data privacy. Visit: www.validsoft.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Elephant Talk's plans and objectives, projections, expectations and intentions (including, without limitation, Elephant Talk's plans in regard to its ValidSoft subsidiary). These forward-looking statements are based on current expectations, estimates and projections about Elephant Talk's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Elephant Talk may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Elephant Talk also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Elephant Talk's filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Elephant Talk.
SOURCE Elephant Talk Communications Corp.