Net Element International Inc NETE, a nano-cap global financial technology and value-added solutions group that supports electronic payments acceptance in an omnichannel environment spanning across point-of-sale, e-commerce and mobile devices, announced on Tuesday its next step into developing blockchain-focused initiatives.
What You Need To Know
Net Element said 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 unnamed firm bought shares of Net Element's restricted common stock and five-year warrants at a price of $11.245 per unit. Each unit consists of one share of common stock and 60 percent of a warrant at an exercise price of the stock's consolidated closing bid price of $11.12 last Friday.
The investment is intended to "fuel the ongoing development of the company's blockchain-focused unit, support growth initiatives and allow for potential acquisitions," according to Net Element.
The 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."
Why It's Important
"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," Net Element CEO Oleg Firer said in a statement. "The company's balance sheet is now the strongest in its history, allowing Net Element to support future growth opportunities."
What's Next?
Shares of NetElement jumped around 25 percent on the report alone as investors continue to show a strong appetite for anything bitcoin- or blockchain-related.
MassRoots Is Going To Leverage Blockchain For The Cannabis Industry
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
