Net Element (NASDAQ:NETE) has announced a letter to its shareholders from company chief executive officer, Oleg Firer:
As quoted in the press release:
As we begin the second half of 2017, I would like to take this opportunity to recap our achievements for the first half of the year and discuss recent corporate events that contribute to our future.
To date, our focus has been on growing our business and creating an efficient, well-functioning company by laying the foundation for a scalable business. In this regard, we established the following priorities:
- Generate sales and expand our distribution network
- Create a scalable infrastructure
- Develop disruptive product offerings and further development of our technology
I am pleased to say that we have been successful in the execution of these priorities and that we are growing our business both domestically and internationally. We have re-organized our international operations and expect to see cost reductions beginning in the third quarter of 2017.
Unfortunately, our business success is not being reflected in our stock price. I fully understand that many of our shareholders are disappointed by the declining share price in 2017. I am personally a Net Element shareholder, and together with the members of senior management team have invested a significant amount of capital into the Company during 2016. In short, I understand your frustration. Be assured that we are working diligently to create a perpetual and sustainable cycle of growth that over time we hope will result in a gain for all our shareholders.
As evident from our public filings, on July 5 we received a notice from NASDAQ stating that our stock does not meet the requirements for continued listing. We have a hearing scheduled with NASDAQ on August 10, 2017, to present our plan to regain compliance. Delisting of our stock is stayed pending the outcome of the hearing. We will make every attempt to remain listed on NASDAQ, but under any and all circumstances we intend to remain a public entity.