Net Element wraps $2.5 million stock placement with $910,000 tranche

Deal sells 16,021,418 shares at $0.14, $0.1951 apiece in two tranches

By Devika Patel

Knoxville, Tenn., Jan. 22 – Net Element Inc. settled a $910,000 second tranche of a $2.5 million private placement of stock with Kenges Rakishev on Jan. 21, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced with Rakishev and investors Oleg Firer, Steven Wolberg and William Healy on Sept. 16.

The company sold 11,357,143 common shares at $0.14 per share in the first tranche. The price per share is a 30% discount to the Sept. 15 closing share price of $0.20. Investor Rakishev bought 4,664,275 shares at $0.1951 per share in the second tranche. The price per share of the second tranche was a 2.45% discount to the Jan. 20 closing share price of $0.20.

Rakishev also received options for 4,664,275 shares.

Proceeds will be used as working capital.

Net Element is a Miami-based online media and technology company.

Issuer:	Net Element Inc.
Issue:	Common stock
Amount:	$2.5 million
Shares:	16,021,418
Price:	$0.14 (for 11,357,143 shares), $0.1951 (for 4,664,275 shares)
Options:	For 4,664,275 shares
Investors:	Kenges Rakishev, Oleg Firer, Steven Wolberg and William Healy
Settlement dates:	Sept. 16 (for $1.59 million), Jan. 21 (for $910,000)
Stock symbol:	Nasdaq: NETE
Stock price:	$0.20 at close Sept. 15
Market capitalization:	$23.61 million

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.