NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

"and the options, preferred shares, etc"

Therein lies the answer , if you add 'warrants' in as well. You got it.

At prices down here and even higher than here , Yorkville has the rights (during a buyout ; without a buyout ; as a way of establishing percentage ownership ; to invoke during shareholder votes ; etc etc etc) to convert those Preferreds and warrants. They are theirs. They are valid financial instruments which Yorkville owns , and they are worth something.

So , at the (toxic, death spiral) conversion rates in all of those SEC filings , they easily have rights to way more than the remaining Authorized Shares. WAY more. THAT is their way of getting their investment back ... in any company they finance.

Kinda like how NEOM owed the subs way more shares and cash than anybody would ever have dreamed .. due to solely to the guaranteed value of what the subs were supposed to get ... and because of the declining share price.

Same thing with Yorkville. The lower the PPS , the more shares they can convert their financial instruments into ... and the more shares they can convert into ... the higher their percentage ownership of the company.

Ergo ... 'toxic death-spiral financing'.

That 'stuff' ... and YAGI's rights .... don't go away simply because the company gets sold.

jonesie