Entry into a Material Definitive

On June 27, 2017, TOT Payments, LLC, TOT New Edge, LLC, Process Pink, LLC and TOT FBS, LLC, as co-borrowers (collectively, the Borrower), each an indirect subsidiary of Net Element, Inc. (the Company), entered into an amendment (the Amendment) to the Loan Agreement dated as of May 18, 2017 (the Loan Agreement) with Priority Payment Systems LLC d/b/a Cynergy Data (the Lender).

Pursuant to the Amendment, (i) the Borrower and the Lender modified the original term loan into a revolving loan and increased the revolving borrowing amount from $2,000,000 to $2,500,000; (ii) the loan maturity was changed from May 20, 2019 to May 20, 2021; (iii) the Lender can fund subsequent draws once every calendar month upon written request from the Borrower, not to exceed $1,000,0 00.00 in any such calendar month; and (iv) principal advances on the multi-draw loan to be funded only during the first 24 months following the Effective Date of the Loan Agreement.

The above description of the Amendment is intended as a summary only and is qualified in its entirety by the terms and conditions set forth therein. Copy of the Amendment is attached hereto as Exhibit 10.1 and is incorporated herein by this reference. All readers are encouraged to read the entire text of such document.

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement or a Registrant.

The disclosures contained under Item 1.01 are incorporated herein by this reference.

Item 3.01.

Notice of Delisting or Failure to Satisfy a Continued Listing Ruleor Standard; Transfer of Listing.

On June 27, 2017, the Company received a letter (the Letter) from the Nasdaq Listing Qualifications Staff (the "Staff") advising that the Staff had determined that: (i) the Company had not regained compliance with the $1.00 per share minimum bid price requirement of Nasdaq Listing Rule 5550(a)(2) as of June 26, 2017 (following the expiration of the 180-day period in which to regain compliance previously provided by Nasdaq) and the Company is not eligible for an extension of such period due to the Companys stockholders equity, as reported by the Company in its quarterly report filed with the with the Securities and Exchange Commission (the "Commission") on May 15, 2017, being less than the minimum $5 million stockholders equity initial listing requirement for The Nasdaq Capital Market; and (ii) trading in the Companys common stock will be suspended at the opening of business on July 7, 2017 and the Companys common stock will be removed from listing on The Nasdaq Capital Market, unless the Company requests on appeal of the Staffs determination to the Nasdaq Hearings Panel (the Panel).

According to the Letter and under Nasdaq rules, the suspension of trading and delisting of the Companys securities will be automatically stayed following a timely request for a hearing pending the issuance of a Panel decision. The Company intends to commence such an appeal within the required appeal period under Nasdaq rules. The Company is considering several paths to regain compliance with the minimum bid price requirement, including, among other things, a reverse stock split. Although there can be no assurance that the Panel will grant the Companys request for continued listing on The Nasdaq Capital Market, the delisting proceedings will be stayed and the Companys common stock will continue to be listed on the Nasdaq pending resolution of the appeal.

Except for the factual statements made herein, information contained in this report consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects or future events, as well as words such as believes, intends, considers, expects, plans, and similar expressions, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and actual actions or events could differ materially from those contained in such statements. For example, there can be no assurance that the Panel will grant the Company any relief from the delisting or that the Company can agree to or ultimately meet the specific requirements of any such relief, or remain listed on Nasdaq or otherwise be publicly traded. Reference is also made to other factors detailed from time to time in our periodic reports filed with the Commission. The forward-looking statements contained in this report speak only as of the date of this report and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this report, unless required by law.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

Exhibit

Number

Description

10.1

Amendment to Loan Agreement, dated as of June 27, 2017, among Priority Payment Systems LLC, as lender, and TOT Payments, LLC, TOT New Edge, LLC, Process Pink, LLC and TOT FBS, LLC, as co-borrowers

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 3, 2017

NET ELEMENT, INC.

By:

/s/ Jonathan New

Name:Jonathan New

Title:Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number

Description

10.1

Amendment to Loan Agreement, dated as of June 27, 2017, among Priority Payment Systems LLC, as lender, and TOT Payments, LLC, TOT New Edge, LLC, Process Pink, LLC and TOT FBS, LLC, as co-borrowers

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Other recent filings from the company include the following:

Major owner of Net Element International just disposed of 28,572 shares - June 12, 2018
Registration statement under Securities Act of 1933 - June 1, 2018

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