****WARNING**** Please read:
If you are thinking that this is a great opportunity and that the price per share can not go lower in this stock please consider this:
Right now:
The authorized amount of shares is 7.5B
Neomedia'a debt is around $40-50 million
The actual conversion price of the "convertible" debt is 0.001 (it is lower but I will leave it there for simplicity).
Number of shares needed to convert $40 million dollars of debt is:
$40M / $0.001= 400,000,000,000 (400 Billion shares)
400 Billion shares is 53 times the current amount of authorized shares.
After looking at these numbers, the question of how many outstanding shares are there becomes irrelevant. YA has diluted recklessly for years and nothing indicates they will stop.
Now:
A little bit of history: looking through the numbers and without any type of "passion":
In 2007 the debt was $50 million. Since then there has been 2 reverse splits.
2007:
Authorized shares: 5 Billion
Outstanding: 500 Million
2010:
Authorized shares: 5 Billion
Outstanding: 2.2 Billion
1st Reverse Split: 1 x 100
2.2 Billion shares became 22 million shares
PLUS increase in authorized shares to 5 Billion
Meaning that the whole previous outstanding shares (what the common shareholder owned) became 0.44% of the whole amount of possible existing shares.
22,000,000 x 100 / 5,000,000,000 = 0.44%
2013
Authorized shares: 5 Billion
Outstanding shares: 4.9 Billion
Full dilution...
Yorkville Advisors (a.k.a. YA) formerly Cornell Capital ran out of shares...
2014
A sophisticated "reverse merger" to achieve approval of another reverse split without the need for common shareholders vote is approved by the Board of Directors.
May 2014--->2nd Reverse Split 1x15 PLUS an increase again of the Authorized shares to 7.5 Billion shares
Meaning: the previous authorized 5Billion shares became
5,000,000,000 / 15 = 333,000,000 shares that represent (the magic number) 4.44% of the whole amount of possible existing shares.
They now found the way to do reverse splits without even needing shareholder's vote. So unless you want to join the club of the 99% loosers you should stay away from this stock.
A reverse split can be called at any time...and you will see your money evaporate while hearing chants of billionaires, Apple, Google.....and whatever sirens fits in order to have a "buyer" of their dilution, deluge of freshly minted shares.
Save your money, stay away from this stock.
