Net Element, a Miami-based technology company specializing in mobile payments and other transactional services in emerging markets and in the United States, announced that it has closed on $11.2 million in financing from Cayman Invest.
The publicly traded Net Element said it issued Cayment Invest a convertible note that can be converted into 15 percent of the company’s outstanding shares at or before March 31, 2015. The note will not accrue any interest during that term. The $11.2 million raise is part of a larger financing round totaling $30 million that the company plans to complete this year.
Oleg Firer, CEO of Net Element, said the funding will be used to execute an aggressive growth strategy. ”We are dedicated to building shareholder value and this transaction provides the company with critical expansion capital from a committed and highly valued international investor,” he said.
Earlier this week, Net Element reported net revenues of $18.74 million for the year ended Dec. 31, 2013, up sharly from $1.38 million for 2012. It posted a net loss for 2013 of $48.3 million, which includes $16.6 million in non-cash compensation and an $11.2 million non-cash loss related to its acquisition of Unified Payments, as compared to a net loss of $16.3 million loss in 2012.