<SEC-DOCUMENT>0001144204-17-059365.txt : 20171218
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<ACCEPTANCE-DATETIME>20171115143121
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ACCESSION NUMBER:		0001144204-17-059365
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20171115

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">November 15, 2017</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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 10%; font-size: 10pt">Attention:&nbsp;&nbsp;</TD>
    <TD STYLE="width: 51%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jan Woo, Legal Branch Chief</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Office of Information Technologies and Services</P></TD>
    <TD STYLE="width: 39%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">Jeff Kauten, Attorney-Advisor </TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></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; text-indent: 0.5in">Registration Statement on Form S-1 Filed
October 26, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">File No. 333-221148</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">&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 dated as
of November 2, 2017 regarding the Company&rsquo;s Registration Statement on Form S-1 that was filed on EDGAR on October 26, 2017
(the &ldquo;Current 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 a Form S-1 with file number 333-219324 was declared effective on August 2, 2017
and that Cobblestone Capital Partners, LLC was identified as the selling shareholder in that prospectus. In light of the previously
registered resale offering pursuant to a registration statement, please provide an analysis as to why you believe this offering
is appropriately registered as an indirect primary offering in reliance on Securities Act Rule 415(a)(1)(i). Among other factors,
address the aggregate size of the resale offerings that have been registered pursuant to this purchase agreement compared to the
number of shares of common stock held by non-affiliates.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In response to this comment,
the Company believes that the offering is appropriately registered in reliance on Securities Act Rule 415(a)(1)(i) due to the following
reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">The Company&rsquo;s
public float has substantially increased since the filing date of the resale offering registered under the registration statement
on Form S-1 (file number 333-219324) that was declared effective on August 2, 2017 (the &ldquo;<U>Prior Registration Statement</U>&rdquo;).
The current public float is approximately $19,058,429.92. It is calculated using the average of high and low prices of the Company&rsquo;s
common stock on the NASDAQ Capital Market on September 27, 2017 (i.e., a date that is within 60 days prior to the proposed sale)
times 1,964,787 shares of the Company&rsquo;s common stock held by non-affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">One-third
of such public float is $6,352,809.97. Even after deducting from such public float amount $2,364,357.45 (which is the dollar amount
of the shares sold to Cobblestone Capital Partners, LLC (the &ldquo;Selling Stockholder&rdquo;) so far pursuant to the common stock
purchase agreement dated July 5, 2017 (the &ldquo;Purchase Agreement&rdquo;) between the Company and the Selling Stockholder, and
resold by the Selling Stockholder under the Prior Registration Statement), the remaining dollar amount available to be sold before
an amount equal to one-third the current public float would be exceeded is $3,988,452.52.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">In the Current
Registration Statement, the Company proposed to register for resale $3,608,658.04 worth of shares of the Company&rsquo;s common
stock (i.e., 654,929 shares of the Company common stock times $5.51 per share, based upon the average of the high and low prices
of the Company&rsquo;s common stock on the NASDAQ Capital Market on October 24, 2017). Even taking into account the dollar amount
of the shares of the Company&rsquo;s common stock previously registered for resale and sold by the Selling Stockholder under the
Prior Registration Statement, such aggregate amount (i.e., $5,973,015.49) would still be below an amount equal to one-third the
current public float (i.e., $6,352,809.97).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Due to market
fluctuation of the per share price of the Company&rsquo;s common stock, the Company re-calculated and updated the amount that the
Company is proposing to register for resale as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(A) $3,988,452.52
(i.e., the amount by which an amount equal to one-third the current public float exceeds the aggregate amount sold to date to the
Selling Stockholder under the Purchase Agreement) <U>divided by</U> (B) $4.50 (i.e., average of the high and low prices of the
Company&rsquo;s common stock on the NASDAQ Capital Market on November 10, 2017) <U>equals</U> 886,322 shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Accordingly,
the Company (i) has amended the Current Registration Statement (by filing with U.S. Securities and Exchange Commission (the &ldquo;Commission&rdquo;),
concurrently with filing of this letter, Amendment No. 1 to Form S-1) proposing to register for resale $3,988,449 (i.e., 886,322
shares of the Company common stock times $4.50 per share) and (ii) hereby requests you to advise the Company when it would be appropriate
to request acceleration of the effective date of the Current Registration Statement, as amended by Amendment No. 1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

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

<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"><U>&nbsp;/s/ Jonathan New&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net Element, Inc.</P>



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