Helping Net Element grow its business
When global technology and publishing company that operates in mobile commerce and payment processing, and also publishes popular entertainment portals and destinations, Net Element, Inc. (OTCQB: NETE), sought to expand its market presence, its leaders turned to Bilzin Sumberg for counsel. Our attorneys provided the requisite legal experience to negotiate and close a series of acquisitions, stock issuances necessary to successfully grow their business, as well as advise Net Element on the SEC compliance.
Helping long-time clients move to the next level is just one more reason we’re glad to be judged by the company we keep.
Net Element Acquires Motorsport.com - Bilzin Sumberg’s corporate team helped Net Element, Inc. in its January 2012 acquisition of the remaining 20% of outstanding shares in its subsidiary, Motorsport.com, Inc. As a result of this transaction, Net Element successfully acquired 100% of Motorsport.com’s shares (it had previously purchased 80% of Motorsport.com’s shares the year prior), making it the sole owner of the leading digital distribution platform that provides interactive multimedia coverage and experiences of F1, NASCAR, Le Mans and hundreds of other race series.
Issuance and Sale of Net Element Shares - With counsel and support from Bilzin Sumberg's Corporate Department, Net Element, Inc. was successful in its issuance and private placement of 13,333,334 of its shares. Bilzin Sumberg also represented one of Net Element's principal shareholders in the sale of 200,000,000 shares of Net Element. The combined transaction value totaled $32 million and involved the exchange of certain debt held by the purchaser into Net Element's common stock and required multiple SEC filings.
General Corporate Matters - Bilzin Sumberg's Corporate Department handled day-to-day matters, such as corporate governance, SEC compliance, negotiation and documentation of joint ventures, establishment of a credit facility, etc.
Merger with Cazador Acquisition Corporation - Bilzin Sumberg also represented Net Element in connection with a merger with Cazador Acquisition Corporation (NASDAQ: CAZA). Cazador was a special purpose acquisition company (a public company formed for the purpose of identifying and acquiring a potential investment opportunity, in this case Net Element, using funds raised in the IPO). Pursuant to the merger agreement, the shares of Net Element common stock were exchanged for newly issued shares of Cazador common stock. Following the merger, the combined entity was named Net Element International, Inc. and infused substantial funds into Net Element, providing the company with the necessary financial resources for its next stage of growth.
The Corporate Team at Bilzin Sumberg provided legal advice to advance Net Element’s interests, including:
Structured and negotiated acquisitions, private placements and other transactions
Prepared and negotiated merger agreement, related SEC filings and other deal documents
By guiding Net Element through this series of transactions, Bilzin Sumberg was able to help its client capitalize on economic opportunities.
Meet Our Team
Serge Pavluk, Corporate & Tax
David Schubauer, Corporate & Tax
Josh Kaplan, Corporate & Tax
Want to learn more? Cazador to merge with Net Element - Press Release