NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

He knows whereof he speaks.

I've enjoyed his objective commentary on various stocks over the years.

re: "and the potential for an RS" .....

One scenario is where a R/S takes this: "the absence of more AS than the current 5B, the computation is moot" out behind the woodshed for a beating as it were lol

1:1000 Reverse Split and keep the Authorized Share count at 5 billion. It's done all the time.

PPS was $0.0025/sh , now it's $2.50/sh.

The 1 billion shares we commoners own amongst us becomes 1 million.

The 32 billion , give or take a few billion , that Yorkville has rights to (at yesterday's PPS of .0025/sh) becomes rights to 32 million.

Excerpts from the 10-K:

"As of December 31, 2006, we were in default of the Investor Registration Rights Agreement pursuant to the August 24, 2006 and the December 29, 2006 Agreements"

"Due to the then-default status, Yorkville had certain material additional rights in these financing arrangements that did not previously exist. Specifically:"

"The requirement for Yorkville to maintain an ownership interest in us of less than 5% was terminated"

I wonder if that means that 5% cap came off permanently and applies to all subsequent situations?

Anyway , such a R/S might enable Yorkville to convert all preferreds , exercise various warrants , pretty much do whatever they wanted and do it free from that (prior?) 5% ownership cap and free from the current (bothersome to them?) 5B A/S limit , and end up with dibs on 32 million shares compared to 'our' 1 million shares.

And start selling them if desired. Certainly voting powers would still allow for 'yes' votes on anything desired.

Probably take longer (longer in terms of how many dollars worth of shares could be traded) to get from $2.50 down to $0.25 than it would to get from .0025 down to .000025 eh? Allow for a better 'cash-out' situation for Yorkville?

And what keeps all this from happening?

Is there anyone 'in power' who 'likes' us common shareholders?

Any reason to make 'us' happy?

Are there any consciences involved here? Morals? Ethics?

Or just the cool clear objectivity of money?

JMHO

jonesie

p.s. You might check SA12's last comment in that thread if you haven't already. Nothing new, but perhaps confirmation from an objective 3rd party 'in the business'.