Elephant Talk Communications, Inc., an international telecom and multimedia content distributor, has reportedly completed the final closing of its private placement for $12.3 million to accredited investors.

According to a press release, the net proceeds of the investment funds will be utilized as working capital and will provide the company with the necessary financial means to meet the expansion requirements of an emerging telecom solutions company.

Company officials said the capital will assist to facilitate the acquisition of ValidSoft and allow Elephant Talk to implement and attract new contracts such as the previously announced contracts with T-Mobile (News - Alert) and Vizzavi Espana, a Vodafone Group Company.

ValidSoft is an Irish software engineering company that develops security software solutions to help global institutions counter the most sophisticated card and electronic fraud consistent with leading independent research thinking.

"This financing provides validation from the investment community that Elephant Talk is an attractive value proposition as it continues to grow market presence, increase earnings and improve shareholder value," said Steven van der Velden, chief executive officer, Elephant Talk Communications, in the release.

Velden said the capital provides the ability to close the pending acquisition of ValidSoft Limited, a paradigm shifting anti-fraud technology company.

He said the capital also improves the financial stability of the company as it continues to expand its global footprint and seek to secure new contracts with mobile telecom companies.

David Weinstein, managing partner, Investment Banking, Dawson James, said Dawson James is pleased to have assisted Elephant Talk with raising the capital needed for them to become a dominant service and software provider for mobile telecom companies.

“Along with our investors we are pleased to help facilitate the acquisition of ValidSoft as we believe that they have the best solution to combat the over $100 billion credit/debit card fraud problem," said Weinstein.

Dawson James Securities, Inc. acted as selling agent in the offering conducted in the United States.