NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

drmyke, a followup ....

.... as we continue this discussion about various options open
to Cornell/Yorkville when it comes to Neomedia, and about YA's
possible inclinations and history when given such options:

Neomedia may or may not be in default. If not, they're close.

Yorkville Advisors might not care. They might not exercise
their rights in a default situation.

I asked around, like I said I would, to find out what happened
between NXNO and Cornell (mentioned in the post I am replying
to). That came out of an IHUB poster having said ABEW was in a
similar situation to NXNO/Cornell, in which he thought Cornell
might have shorted NXNO helping to trigger a default.

Here's what I learned:

This seems to be fact: "Cornell seized all their (NXNO's)
assets, then assigned the rights to TTGL in exchange for 9
million dollars worth of new debentures between TTGL &
Cornell."

TTGL is in fact Titan Global Holdings, a current Yorkville
Advisors client.

This was speculation put forth by my source: "Cornell believes
they have a better chance to get paid back from TTGL then they
did with NXNO so they moved the debt from one company to
another by seizing everything from NXNO."

As it happens, Cornell may have been right. TTGL is one of the
few Cornell clients to be up in PPS for very long after a
Cornell financing. As of 12/28/07 TTGL was at $1.48/sh, up 85%
since 10/16/06, the date of a $6MM Convertible Debenture.

So, I find all of that to be at least interesting. Cornell
will at times do what it wants to do with IP or assets that it
owns by virtue of a client defaulting on its financial
obligations to Cornell.

Apparently Cornell will do what it thinks is best for Cornell.


Imagine how the NXNO shareholders felt? NXNO was .002 on 12/28/07.

FYI and FWIW

jonesie

p.s. Oh, I ran across this while doing the research on the
NXNO/Cornell stuff:

"Robert Farrell, our Chief Executive Officer and Joseph W.
Donohue, Jr., our Chairman of the Board of Directors
co-founded Cornell Capital Partners, LP.

In November 2003, Mr. Farrell and Mr. Donohue left Cornell
Capital Partners, LP to form Sagamore Holdings. Cornell
Capital Partners, LP and Yorkville Advisors Management, LLC are
controlled by the same natural person."

http://www.sec.gov/Archives/edgar/data/1317402/000114420405015288/v018008_sb2a.txt

Now, here's what Sagamore Holdings is/was:

"Sagamore Holdings, Inc. (the "Company" or "Sagamore Holdings")
is a holding company that was formed and incorporated in the
State of Florida on August 30, 2004 to acquire substantially
all of the net assets of Nexus Custom Electronics, Inc.
(NXNO) ("Nexus"), a wholly-owned subsidiary of Jaco
Electronics, Inc. ("Jaco"), through its newly formed,
wholly-owned subsidiary, NECI Acquisition,
Inc. ("NECI").

So, two co-founders of Cornell Capital Partners left Cornell,
created Sagamore Holdings, acquired NXNO, borrowed money from
Cornell, defaulted on the deal letting Cornell have NXNO's
IP/assets and give it to TTGL, another holding company, which
possibly would have a better shot at a higher share price by
virtue of a new name, new symbol, new shareholders, new etc.


See how this works? :)