NeoMedia Technologies, Inc (NEOM)

[Poptech]

risk: You are way off on your exercise price. Your $0.0012 is actually $0.15, or fifteen cents per share from the last restructuring agreement.

"The warrants were issued with an initial fixed exercise price of $0.15 per share; however, as a result of the anti-dilution protection in these warrants, the issuance of subsequent debentures for a lower price resets the fixed exercise price of the warrants to the lower price and adjusts the number of warrant shares issuable."

http://www.sec.gov/Archives/edgar/data/1022701/000114420412061699/v326326_10q.htm

You may be looking at anti-dilution price which doesn't apply at this point.

That left the warrants unable to be exercised. They were dilution free. We haven't seen the new terms, but generally warrants are not issued in the money, but they may be in this case.

YA didn't "forgive" anything as some have suggested. We know the value of the old warrants, but this smaller number of 500M warrants is likely more valuable to YA than the old 1.9B warrants. YA did not sprout angel wings. The only thing YA gave up was that the share price would reach $0.15 and that NeoMedia could pay off YA by the maturity date. The rights to reset the exercise price and reduce the number of warrants was already in previous agreements.

There is little doubt that the term "reverse split" will be in the restructuring documents. While investors will throw themselves over the coffin if we have the reverse, it will help NeoMedia pay off YA faster. If they release the 8K on COB Friday, we will have a long weekend of fear.