Net Element sells shares, and its CIS investors sell their shares

    Net Element, an American corporation specializing in mobile payments, is planning an additional placement of $ 50 million, CNews reports . She also owns the Russian payment systems TOT Money and PayOnline. Net and Element Russian and Kazakh investors have also expressed their intention to sell their own shares.

    Net Element International (NETI) enlisted the support of Revere Securities for an additional public offering on the Nasdaq. It is worth noting that, according to the agreement, the number of NETI shares sold cannot exceed 20% of the total volume of securities. In accordance with Nasdaq rules, a company is not entitled to sell shares in excess of one third of the value of the volume of shares in free float (free float), if the free float is less than $ 75 million. NETI has this amount is $ 18.2 million, and its capitalization - $ 53.4 million. Therefore, no more than $ 6 million will be able to attract.

    Investors from the CIS countries also announced their intention to sell the shares: Russian Anvar Mametov (his Cayman Invest fund bought back 12.2% of shares for $ 11 million in 2014) and Kazakh entrepreneurs Kenes Rakishev and Nurlan Abduov, which have 16% and 15.5% respectively.

    NETI owns the Russian mobile payment system TOT Money. Less than a month ago, Net Element acquired the Russian payment system PayOnline for $ 8.5 million.

    NETI's operations are still not profitable. Last year, the net loss amounted to $ 10.2 million. Revenue for the year increased by 13% and reached $ 21.2 million. TOT Money revenue from mobile payments in Russia decreased by more than 50% to $ 1.8 million. NETI stock quotes decreased by 7 times - to $ 1.17.

    And at the end of 2014, the founder of the corporation, Mike Zoe, resigned from all his posts.

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