Net Element International Inc (NASDAQ: NETE) faltered midday Wednesday on word it has finalized a $7.55-million private placement of common stock and warrants with a New York-based family office that has made multiple investments in companies with a blockchain-focused technology platform.
The Miami-based Net is a global financial technology and value-added solutions group that supports electronic payments acceptance in an omni-channel environment spanning across point-of-sale (POS), e-commerce, and mobile devices.
The investor purchased shares of the Company’s restricted common stock, and five-year warrants at a price of $11.245 per unit, each unit consisting of one share of common stock and 60% of a warrant at an exercise price of the stock’s consolidated closing bid price of $11.12 last week.
The new investment will fuel the continued development of the Company's blockchain-focused unit, support growth initiatives and allow for potential acquisitions.
Net Element’s blockchain-focused business will be a decentralized crypto-based ecosystem that will act as a framework for value-added services that can connect merchants and consumers directly utilizing blockchain technology while increasing the speed and efficiency of transactions made through the Company's processing, settlement and services ecosystem.
According to CEO Oleg Firer, "We are delighted to receive a significant investment that will help ensure full scalability of our platform and accommodate the Company’s anticipated future growth as well as the development of our value-added services blockchain platform.
"The Company's balance sheet is now the strongest in its history, allowing Net Element to support future growth opportunities."
Shares in NETE dipped 83 cents, or 6%, to $13.00 Wednesday