NeoMedia Technologies, Inc (NEOM)

[brewskih]

They committed more shares then they were authorized to commit and you dont see that as harmful to shareholders. In essence they tied the shareholders hands, and literally forced them to vote yes on the increase in shares, because to vote no would be more harmful to the shareholders, if NEOM was forced to default. So in either situation the shareholder gets the short end of the stick. Either they vote down the increase and it costs millions to the shareholders for the default, or they vote yes to avoid the default and are stuck with the increased dilution. How are either of these beneficial to the shareholder?

And why didnt they have a proposal where 2 billion could be authorized instead of 5 billion? 2 Billion was more then enough to cover their shortfall, pluss leave them around 700 million left over for future acquisitions etc. Now you are stuck approving the 5 million or none and either case is a lose for the shareholder.