As previously reported on the Current Report on Form 8-K filed by Net Element, Inc. (the Company) on July 7, 2017, in consideration for entering into the Common Stock Purchase Agreement dated as of July 5, 2017 (the Purchase Agreement) between the Company and Cobblestone Capital Partners LLC (Cobblestone Capital), the Company was obligated, upon the earlier of (i) on or one business day after the Commission declares effective the registration statement referred to the Purchase Agreement or (ii) six months after the date of the Purchase Agreement, to issue to Cobblestone Capital such number of shares of Common Stock that would have a value equivalent to $200,000 calculated using the average of volume weighted average price for the Common Stock during the 3 trading days period immediately preceding the date of issuance of such shares (the Commitment Shares). Under the Purchase Agreement, the Commitment Shares are deemed to have been vested and earned as of the date the Purchase Agreement was executed.
Accordingly, on August 3, 2017, the Company issued to Cobblestone Capital 456,761 shares of the Company common stock based on the price of $0.4379 per share. Such shares of common stock of the Company were issued to Cobblestone Capital under an exemption from the registration requirements of the Securities Act of 1933, as amended (the Securities Act), in reliance upon Section 4(a)(2) of the Securities Act.
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: August 4, 2017
NET ELEMENT, INC.
/s/ Jonathan New
Name: Jonathan New
Title: Chief Financial Officer
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