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Friday, July 31, 2009 7:33:47 AM
"I am also aware of recent statements on this board by several who have been deemed as experts on the financial and trading aspects of the company. They have stated that YA cannot convert if the pps is below .01."
No. What was stated is this: Under Delaware law, a company cannot issue shares for less than par. The par of Neom common is one cent. So YA may not pay Neom less than one cent for each share of common stock it acquires on conversion, regardless of the price that might be yielded by the conversion formula.
So, if the market PPS went below 1 cent, it would make no sense for YA to exercise its conversion rights as it could purchase shares on the open market more cheaply than from Neomedia.
Any legal analysis I post is not a formal legal opinion and may not be relied on by anyone for any purpose. If you want legal advice you can rely on, hire a lawyer.
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