San Diego, CA -- (SBWIRE) -- 06/11/2013 -- An investigation on behalf of investors of Elephant Talk Communications Corp (NYSEMKT:ETAK) shares over potential securities laws violations by Elephant Talk Communications and certain of its directors and officers in connection certain financial statements was announced .

Investors who purchased shares of Elephant Talk Communications Corp (NYSEMKT:ETAK) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Elephant Talk Communications Corp (NYSEMKT:ETAK) concerning whether a series of statements by Elephant Talk Communications regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Elephant Talk Communications Corp reported that its annual Total Revenue declined from $32.23 million in 2011 to $29.20 million in 2012 and that its respective Net Loss declined from $25.31 million to $23.13 million.

On June 3, 2013, Elephant Talk Communications Corp announced that it had received $10.5 million from investors pursuant to a Securities Purchase Agreement, including a $3 million investment by the CEO. Under the terms of the Securities Purchase Agreements, the investors will receive 14,000,000 shares of NYSE:MKT:ETAK common stock at a price of $0.75 per share, and warrants to acquire 6,300,000 shares of ETAK common stock, with a per share exercise price of $0.975. As per the prospectus for the above offering Elephant Talk Communications Corp had 118,269,117 shares of common stock outstanding as of June 3, 2013.

According to the investigation this offering is highly dilutive to existing shareholders.

Shares of Elephant Talk Communications Corp (NYSEMKT:ETAK) declined from as high as $3.94 per share in July 2011 to $0.63 on June 6, 2013.

On June 10, 2013, NYSE:ETAK shares closed at $0.70 per share.

Those who purchased shares of Elephant Talk Communications Corp (NYSEMKT:ETAK), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com