SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Item 1.01 Entry into a Material Definitive Agreement.
On November 26, 2012, Net Element International, Inc. (the “Company”) entered into a Loan Agreement with Infratont Equities Inc. (“Infratont”). Pursuant to the Loan Agreement, the Company agreed to loan to Infratont $1,791,475. The loan must be funded within five business days from November 26, 2012, and is secured by Infratont’s accounts receivables. Pursuant to the Loan Agreement, the loan matures on November 15, 2013 and accrues interest at a rate of 1.75% per month. The interest accrued on the loan under the Loan Agreement is payable quarterly commencing in March 2013. The loan may be pre-paid at any time without penalty or charge. Under the Loan Agreement, the maturity date of the loan may be accelerated if an event of default occurs under the terms of the Loan Agreement, including if certain bankruptcy, receiver, insolvency or dissolution events occur with respect to Infratont or if Infratont fails to timely pay principal and/or interest under the Loan Agreement and such failure continues for 60 business days from the date of receipt of written notice of such failure from the Company.
Item 9.01 Financial Statements and Exhibits.
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.
Date: November 29, 2012