MIAMI, FL — (Marketwire) — 07/20/11 — Alternet Systems, Inc. (OTCQB: ALYI) (PINKSHEETS: ALYI) today announced that it has arranged a non-brokered private placement. The proceeds of the private placement will be used to finance Alternet-s growth plan in the high growth segments of the mobile value added services markets, and digital and mobile security. Mobile value added services are growing explosively fueled by the near ubiquity of the mobile phone, which has achieved over 80% penetration of the global population.
In the transaction concluded June 15th, a new investor purchased 3,333,333 common shares for $500,000. As part of the transaction the investor received warrants for an additional 2,000,000 shares at an Exercise Price of $0.25 per share. The warrants have an 18 month term and carry a call option, should the Company-s share trade at $0.40 or higher for any 60 day period. This placement adds to funds raised earlier in the second quarter, as disclosed in the company-s filings.
Alternet CEO Henryk Dabrowski expressed great optimism at the news of the capital raise, saying, “This new investor clearly sees the potential in Alternet and its mobile industry investments. We appreciate their support and investment at a time where we are fulfilling key contracts and projects with Mobile Network Operators and Banks in the Americas. This private placement, in this and future tranches, allows Alternet to fund its high growth subsidiaries.”
Alternet-s mobile commerce subsidiary, Utiba Americas, is rapidly expanding its presence throughout Latin America and deploying customer contracts. Utiba Americas is a joint venture with Singapore based software developer, Utiba, a leading provider of mobile financial service platforms worldwide. Alternet-s digital and mobile security subsidiary, International Mobile Security (IMS), is marketing mobile security products to the global law enforcement community and preparing to launch mobile security products for the enterprise and consumer markets. IMS-s product portfolio was recently augmented with the acquisition of intellectual property concluded in the first quarter of 2011.
On Thursday, July 28th, Alternet-s management will issue a letter to update current and prospective shareholders on the status of business in the first half of 2011.
. (OTCQB: ALYI) (PINKSHEETS: ALYI), a US corporation headquartered in Miami, Florida, is a leading enabler of Secure Mobile Commerce and Communications in the Americas and Caribbean. Alternet has regional presences in 17 countries throughout the region through a network of fulfillment partners and agents. Alternet-s subsidiaries provide a comprehensive suite of hosted and Software as a Service (SaaS) applications for the Utility, Transportation, Financial, and Telecommunication, and Retail industries. Alternet subsidiaries include Utiba Americas, a joint venture with Utiba Pte Ltd., the leading provider of mobile payment and financial transaction software, and International Mobile Security (IMS) a newly formed provider of mobile communications security products and services.
“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.
Erin Clancy
VP Marketing
Investor Relations
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