Net Element, Inc. (NasdaqCM:NETE) announced that it has entered in to a letter agreement for private placement of 11,357,143 common shares at a price of $0.14 per share for gross proceeds of $1,590,000.02 on September 11, 2015. The company will also issue 11,357,143 restricted options to purchase 11,357,143 shares of the company. Each restricted option will expire on the fifth annual anniversary of the date of the agreement and shall be exercisable into one restricted share at the exercise price equal 110% of the closing trading price per one share of company common share on the date of issue. The transaction will include participation from existing investor, Star Equities, LLC, which will purchase 2,142,857 shares for gross proceeds of $299,999.98 and individual investors, Steven Wolberg, which will purchase 357,143 shares for gross proceeds of $50,000.02, William Healy, which will purchase 714,286 shares for gross proceeds of $100,000.04, Kenges Rakishev, which will purchase 7,142,286 shares for gross proceeds of $999,999.98, Vladimir Sadovskiy, which will purchase 285,714 shares for gross proceeds of $39,999.96 and David Rozinov, which will purchase 714,286 shares for gross proceeds of $100,000.46. The company shares being issued are subject to hold period.

On the same date, the company issued 2,142,857 shares for gross proceeds of $299,999.98 to Star Equities LLC in its first tranche. The company also issued 2,142,857 options which can exercise at a price of $0.22 per share. The options will expire on September 11, 2020.