Cloud-based mobile network solutions provider Elephant Talk Communications Corp. (NYSE MKT: ETAK) is providing its shareholders with an update on its divestiture of its wholly owned subsidiary ValidSoft Limited, the company said.
On March 22, 2016, ET provided Cross River Initiatives LLC with a notice of default on the binding letter agreement dated February 17, 2016 between the Buyer and the company concerning the proposed purchase of ValidSoft and governing certain important matters relating to the interim financing of ValidSoft´s business and operations.
While the company will not totally foreclose consummating the ValidSoft sale transaction with the Buyer as originally contemplated, the company will no longer give preference or exclusivity to the Buyer. The company is working with an investment bank to evaluate strategic options regarding the planned divestiture of ValidSoft.
Elephant Talk Communications has developed a proprietary software and telecoms platform to provide cloud-based mobile network solutions to Communications Services Providers (MNOs, MVNOs), Enterprise, Government/Education Organizations, Application/Content and Retail Providers.
ValidSoft, a subsidiary of Elephant Talk Communications Corp., secures transactions using personal authentication and device assurance.