NeoMedia Technologies, Inc (NEOM)

[wildbill1]

officially, no, cornell does not have a seat on the board, etc. but make no mistake..they called the shots on the layoffs last friday, and they do have "yea or nay" power, IMO, on major company transactions, such as selling the subs (don't believe for a second they're not sticking their noses in the sale of paint, and could be a reason it's taking longer than expected) I never said there was a $30 million loan-if I used the term loan it was in error...it is not equity however (the 27 million plus owed)..it's a hybrid liability (warrants, etc) on the balance sheet, and acts more like a loan than equity. interest is accruing on the $27 million outstanding. check the Q for details...you'll notice they took valuation adjustments every quarter on this liability, due to the stock price falling.
you're right..they've made a bunch of money on this company...but they do have $27 million "owed" to them by NEOM, which does, by my definition, put it "at risk"--which gives cornell even more room to "call the shots", IMO
I wish NEOM would get a new source of funding, but i don't think that will happen....
i agree..pps will not be rising to any appreciable level short term, which is why cornell, in order to get the $27 million paid down, will be selling, IMO, most if not all the subs..no other way to ensure the $$ are paid by NEOM, since it has no cash...obviously i could be wrong, but i've seen other companies with venture capital groups go down the same path, and again, the venture capital group has called the shots, so to speak, in all cases.