<SEC-DOCUMENT>0001144204-16-119976.txt : 20160928
<SEC-HEADER>0001144204-16-119976.hdr.sgml : 20160928
<ACCEPTANCE-DATETIME>20160817145721
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ACCESSION NUMBER:		0001144204-16-119976
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160817

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Net Element, Inc.
		CENTRAL INDEX KEY:			0001499961
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
		IRS NUMBER:				901025599
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		3363 NE 163RD STREET
		STREET 2:		SUITE 705
		CITY:			NORTH MIAMI BEACH
		STATE:			FL
		ZIP:			33160
		BUSINESS PHONE:		(305) 507-8808

	MAIL ADDRESS:	
		STREET 1:		3363 NE 163RD STREET
		STREET 2:		SUITE 705
		CITY:			NORTH MIAMI BEACH
		STATE:			FL
		ZIP:			33160

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Net Element International, Inc.
		DATE OF NAME CHANGE:	20121002

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Cazador Acquisition Corp Ltd.
		DATE OF NAME CHANGE:	20100825
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">August 17, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">U.S. Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, D.C. 20549</P>

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    <TD NOWRAP STYLE="width: 0.75in">Attention:&nbsp;&nbsp;</td>
    <TD STYLE="width: 3.5in">Jan Woo, Legal Branch Chief Office of Information Technologies and Services</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>Jeffrey Kauten, Attorney-Adviser </td>
    <TD>&nbsp;</td></tr>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.5in; text-align: left">Re:</TD><TD STYLE="text-align: justify">Net Element, Inc.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Registration Statement on Form S-1 Filed July 20, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">File No. 333-212591</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This letter is on behalf of Net Element,
Inc. (the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;our&rdquo; or &ldquo;us&rdquo;) in response to your comments of August
4, 2016 regarding the Company&rsquo;s Registration Statement on Form S-1 that was filed on EDGAR on July 20, 2016 (the &ldquo;Registration
Statement&rdquo;). For convenience of reference, we have set forth your comments in bold below, with the Company&rsquo;s response
following each comment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><U>General</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>1.</B></TD><TD STYLE="text-align: justify"><B>We note that you are registering a significant number of your outstanding shares (not held by
affiliates) for resale pursuant to an equity line financing. Given the size of this offering, it appears that this may be a primary
offering that can proceed on an &ldquo;at the market&rdquo; basis under Rule 415(a)(4) only if the company is eligible to conduct
a primary offering on Form S-3. Please advise regarding your basis for determining that the equity line financing transaction is
appropriately characterized as a transaction that is eligible to be made pursuant to Rule 415(a)(1)(i) of the Securities Act of
1933. For guidance, refer to Questions 139.12 through 139.24 of the Securities Act Sections Compliance and Disclosure Interpretations.
Alternatively, please amend your registration statement to register no greater than one-third of your public float, excluding shares
beneficially owned by your affiliates.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In response to this comment,
the Company amended the Registration Statement to register one-third of the Company&rsquo;s public float, excluding shares beneficially
owned by the Company affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><U>Cover Page</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<TD STYLE="width: 5pt"></TD><TD STYLE="width: 36pt"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Please revise the cover page to include disclosure regarding concurrent offerings and disclose
the total number of shares that are being concurrently offered. Provide the file numbers and the number of shares available under
them.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: 0in">In response
to this comment, the Company revised the cover page to include disclosure regarding other effective registration statements filed
by the Company, under which, even though no securities are currently offered concurrently with this Registration Statement, certain
shares could be offered from time to time by the Company and/or certain selling security holders named therein. The Company also
disclosed the total number of shares that may be so offered under such other concurrently effective registration statements of
the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><U>Plan of Distribution, page 15</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<TD STYLE="width: 5pt"></TD><TD STYLE="width: 36pt"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Because ESOUSA Holdings, LLC is an underwriter of the proposed offering, it may not rely on
Rule 144 to sell its shares. Please revise to remove references to ESOUSA Holdings, LLC being able to rely on Rule 144.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41pt; text-align: justify; text-indent: 0in">In response
to this comment, the Company revised the Registration Statement to remove references to ESOUSA Holdings, LLC being able to rely
on Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you have any additional questions or
comments, please feel free to contact me directly at 305.588.0122 or Serge V. Pavluk of Snell &amp; Wilmer L.L.P. at 714.427.7442.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 30%; border-bottom: Black 1pt solid; padding-left: 9pt">/s/&nbsp;&nbsp;Jonathan New</td>
    <TD STYLE="width: 70%">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Jonathan New</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Chief Financial Officer</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Net Element, Inc.</td>
    <TD>&nbsp;</td></tr>
</table>
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