NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

B.E. , I hear what you're saying ....

.... about being easiest to raise money when you don't need it.

I hope it's cash too. And that the terms aren't too awful. In the past NeoMedia has had to reprice nearly every financial instrument YAGI owns downwards to ever-more favorable terms for YAGI , in order to get each successive loan.

I agree that this could signal YAGI confidence. Hopefully this financing won't provide YAGI the last bit of NEOM ownership they might want to have before confidently taking it away from 'us'.

I know this is kindasorta apples and oranges , but your comment about when it's easiest to raise money exploded a memory bubble in my head. Tobin Smith said essentially the same thing back in 2005, excerpts below:

"It appears that NEOM borrowed $10 million from Cornell Capital to prepare for this deal. Put yourself in NeoMedia’s position – if you had a Fortune 100 firm like Microsoft or Intel considering taking a 19.9% position in your company and a licensing deal for $5 million, would you want to make the final terms with $2 million in the bank?

NEOM is showing a lot of moxie here -- they only get the best terms with MSFT, et al, if they can show they don’t need their money as much as they need their confirmation that PaperClick is going to be the primary technology for machine-read URLs.

To bulk up for the final pricing of the deal, NEOM has taken the big leap with Cornell Partners to secure the funding they are going to need to take them to the next level.

We have had extensive conversations with Mark Angelo, CEO at Cornell, about NEOM and the gist of the conversations is this: They see the big picture at the end of the rainbow and want to be there in a big way. Cornell is an almost-$500 million hedge fund that specializes exclusively in PIPE investments in growth microcap companies.

NEOM is operating from strength, not weakness, in any pricing of an equity/licensing deal at a time when they do not need the money. This is the key point."

B.E. , you can see why I had to chuckle ;)

regards,

jonesie

jonesie