Net Element Inc (NASDAQ: NETE) is having an overwhelmingly strong day in the market today, and for good reason. The company announced a private placement that proved to lead to excitement among investors. Today, we’ll talk about the private placement, what we’re seeing from the stock, and what we’ll be watching with regard to NETE ahead.
NETE Gains On Private Placement
As mentioned above, Net Element is having an incredibly strong start to the the trading year after announcing a private placement. The company announced that it has completed a $7.55 million private placement of restricted common stock and warrants. The placement was entered into with a family office based in New York that has made several investments in companies with blockchain technology platforms.
According to the press release, the investor purchased shares of NETE restricted common stock as well as five-year warrants with a price of $11.245 per unit. Each of these units consists 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 on December 29.
The funds involved in the private placement will support the further growth initiatives and open the door to potential acquisitions in the future. In a statement, Oleg Firer, CEO at NETE, had the following to offer:
“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.”
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news causes movement in the market. With the news of the private placement, Net Element investors are definitely excited, as can be seen in the movement of the stock. At the moment (2:50), NETE is trading at $13.89 per share after a gain of $2.76 per share (24.80%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NETE. In particular, we’re interested in following the company to see where they put these new funds to work. Nonetheless, we’ll be following the story closely and bringing you the news as it breaks!
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