NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

I think you are probably correct ....

.... in that , unless the AS limit is increased or some kind of Reverse Split takes place , it would be flat out illegal for YA to have more than ~3.8B shares out of the 5B authorized. They've got rights to them , but they can't have them.

You used a 1:1000 Reverse Split example in a previous post ....

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29485983&txt2find=

... and even in that scenario , if everything (Outstanding Shares , Authorized Shares , YAGI's convertible/etc shares) were reduced proportionately , the same ratios would exist ... as you said.

My only additional comment on that has been ... I have seen instances in other 'serial diluter' companies , where they did such a reverse split yet did not change the Authorized number. Nobody liked it , but they did it anyway and as far as I know got away with it.

In our situation , whether or not that AS gets changed in a R/S situation is probably up to a majority vote of shareholders. I think YAGI wins that vote. I think they may have already won votes predicated on the 'conversion' rights they have to shares , such as the vote to raise the AS from 1B to 5B. And perhaps they have de facto 'voted' not to have a legally required Shareholders' Meeting.

Anyway , if a 1:1000 R/S was done and the AS was left at 5B ... YAGI's full rights of shares ownership could come into play and give them a higher percentage of ownership of the company. LOL , what they need that for , who knows , oops , we did talk about that before to some extent , they're first in line to get paid in the event of a company sale and the higher percentage 'paper ownership' they have just puts them 'more firster'(lol) in line.

So , I agree with you. No R/S and 5B AS remains status quo , YAGI's multi-billions of shares are probably somewhat meaningless.

Do a R/S and keep AS at 5B , not so meaningless.

Shareholder vote to increase the AS to 20B ... YAGI wins that vote easily ... and again their percentage ownership goes up.

All JMHO and all of the 'continues to be posted' was begun by a question as to where that 9B number came from:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30759370

I'm not arguing the point , nor am I trying to change anyone else's opinion ... I'm merely presenting the numbers available in SEC filings and interpreting them per my opinion , as I think these scenarios could one day be relevant to our investments.

jonesie

p.s. re: "there is still under one billion in the float for now"

Close.

"The number of outstanding shares of the registrant’s Common Stock on May 9, 2008 was 1,068,376,229"

http://www.sec.gov/Archives/edgar/data/1022701/000114420408029387/v114084_10q.htm