NeoMedia Technologies, Inc (NEOM)

[ASTOCKCOLLAPSE N0W]

The effective interest rate on the recent convertible debenture was far more than 13%.

You also have to take into account the granting 125,000,000 $0.04 warrants and the $781,000 in financing fees retained by Cornell.

Let's do the math:

Warrants: $5,000,000 (125,000,000 * 0.04)
Fees: $781,000
--------------------
Net: $5,781,000

Funds received: $7,500,000
Outlay: $5,781,000
--------------------
Percent: 77% (fixed) + 13% annual.

In short it cost NEOM $5,781,000 in cash and stock for a $7,500,000 loan at a 13% interest rate, and that is not taking into account the fact that the paper is convertible into stock at a 10% discount to prevailing market prices.

I know guys in Vegas who would do it for a lot less though the cost of defaulting would literally be "deadly".