9% series A convertible preferred shares were at $1,000 per preferred
By Devika Patel
Knoxville, Tenn., May 1– Net Element, Inc. negotiated a $5.5 million direct placement of 9% series A convertible preferred stock on April 30, according to an 8-K and prospectus supplement filed Friday with the Securities and Exchange Commission.
The company will sell 5,500 preferreds at $1,000 apiece. Each preferred is convertible into 575 common shares at an initial conversion price of $1.74, a 51.3% premium to the April 29 closing share price of $1.15.
Proceeds will be used for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters, debt repayment of debt and capital expenditures, as well as for the cash portion of the company’s planned acquisition of a group of companies that operate a protected payment processing system to accept bank card payments for goods and services, and to purchase residual distributions from agents.
Net Element is a Miami-based online media and technology company.
| Issuer: | Net Element, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $5.5 million
|
| Preferreds: | 5,500
|
| Price: | $1,000
|
| Dividends: | 9%
|
| Conversion ratio: Into 575 common shares (per preferred)
|
| Conversion price: | $1.74
|
| Conversion premium: | 51.3%
|
| Warrants: | No
|
| Pricing date: | April 30
|
| Stock symbol: | Nasdaq: NETE
|
| Stock price: | $1.15 at close April 29
|
| Market capitalization: | $55.05 million
|
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