Net Element International Inc. (NASDAQ:NETE) Gets Volatile on Promising Sales Data

[[tagnumber 0]] [[tagnumber 1]] [[tagnumber 2]]The share price of Net Element International Inc. (NASDAQ:NETE) got really volatile this month after the company filed some financial data on PayOnline – the online payments company that NETE plans to acquire. As NETE own financial report for the first quarter is still missing, traders could have some profits from trading that cheap penny stock.[[tagnumber 1]] [[tagnumber 2]][[tagnumber 5]][[tagnumber 1]] [[tagnumber 2]]The last session closed with an over 20% loss which represented a downward correction of NETE after it spiked to over $0.6 per share a week ago. Yesterday, the stock closed at $0.26 on over 5 million traded shares. During the session, the share price broke the 20–day moving average and the other major technical indicators confirm the bearish signals for today.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]In March this year, one of the company‘s subsidiaries entered into an agreement to acquire PayOnline which operates a protected payments processing system to accept bank payments for goods and services. Under the terms of the deal, NETE will have to pay $3.6 million in cash and another $3.6 in restricted shares of its common stock upon closing, followed by another four installments with the total value not exceeding $8.42 million.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]As of the end of March, NETE had no sufficient cash to carry on its own operations and a working capital deficit of $1.9 million, thus the news about expanding the business did not end the downtrend of the stock. This month though, with still no news on the actual closing of the acquisition, some more data and PR on PayOnline are creating hype around NETE stock.[[tagnumber 16]][[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]From NETE recent SEC filings, it is seen that the agreements for the company‘s convertible preferred stock and convertible notes have been just put on hold until September for reasons which are not revealed, and until then NETE and the related investors will have to negotiate new terms.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Also, at the end of July NETE filed registration statements for over 93 million new shares of its common stock issuable upon conversion of senior convertible notes, representing massive shareholder dilution that justifies a much lower market value for the company‘s equity. Meanwhile, there is also the threat of NASDAQ delisting as the stock price goes further below the $1 mark.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]