NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

claw , I see krays' answer to you ...

... and your question raises some others, simply out of curiosity.

I'm not sure of the relevance of the .02 'fixed' conversion price other than with regards to what krays' points out ... since there was originally 27,000 of these Series C preferred put out there (In return for $27MM?) and the highest possible conversion price is now .02/NEOM share , that does imply that no fewer than 1,350,000,000 shares would eventually hit the market due to the conversion of this preferred ... and of course with conversions taking place sub-half-penny , lots more than that can be added to the dilution.

It's also interesting that this 'fixed' price was changed from .50 to .02 at a subsequent point in time ; below is the verbiage where it started at .50 ; there were a lot of items in the filing stipulating conditions under which it could be changed , but I don't remember which item triggered the change.

"The Conversion Price shall be equal to,
at the option of the Holders the lesser of (i) Fifty Cents ($0.50) (the "Fixed
Conversion Price") or (ii) ninety seven percent (97%) of the lowest closing bid
price of the Common Stock for the thirty (30) trading days immediately preceding
the date of conversion"

I don't really even understand why there was a need to change that , since they can always convert at the 'lesser' number , that being 97% of the lowest closing bid ... blah blah blah.

As I said , just out of curiosity. Any idea on why that 'fixed' number would be changed?

jonesie