NeoMedia Technologies, Inc (NEOM)

[maybank]

Directors must realise that their buying or selling of shares in their company could have an impact on their company's share price. For example, if a NEOM director or his family members who obtained NEOM shares from the director decided to sell 200,000 shares at $0.05 a share. The share price was already weak after continuing to drop from say, $0.06 to $0.05 and the company was already going through troubled times and badly in need of market support. This sale of shares causes the market to react with a drop in the pps by say $0.005 (half a cent only).

The sales of 200,000 shares at $0.05 brought in proceeds of $10,000. Some may say this is a small sum, so why make a fuss about this small sum?

What is the effect on the company and shareholders caused by the $0.005 share price drop? If the numbers of shares issued is say 700 million shares, the reduction is market valuation of the company would be $3.5 million!

Some of our long-time longs have holdings of more than a million shares. For each million shares, the loss in value would be $5,000.

Therefore, please do not just look at the $10,000 proceeds from the sale of the shares by a director ot his family members. What is the ripple effect of that sale? it is multiplied many fold to other shareholders!

A Director must remember that with perks and priveleges come DUTY and RESPONSIBILITY to all stakeholders of the company, and that includes shareholders!