NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

"of the past"??

We just read about more dilution in the latest SEC filing. We just read about it last week. Of the past? When was THAT said?

On October 28, 2008, the Company issued the second Debenture in the amount of Two Million Three Hundred Twenty-Five Thousand Dollars ($2,325,000) in accordance with the terms of the SPA. .... At any time after the Transaction Date, the Investor shall be entitled to convert any portion of the outstanding and unpaid principal and accrued interest thereon into fully paid and non-assessable shares of Common Stock at a price equal to the lesser of $0.02 and ninety-five percent (95%) of the lowest volume weighted average price of the Common Stock during the ten (10) trading days immediately preceding each conversion date.

Even at .02/share, there's another 100,000,000 shares of dilution, and we're a long way from .02/share. At 95% of Friday's close of .0028/share, that one little tranche gives YAGI rights (more voting rights? lol) to another 874,060,150 shares. We're into the billions and billions and billions of voting rights already.

And then of course , after all the loan shark fees , in order to even GET that second tranche the company had to give another 450,000,000 warrants. Now I know , I know , gee whiz look at all those high prices on those warrants , that should get us just as excited as the options the Chipster and TurnYaAroundUntilYou'reDizzy O'Leary had in some verbiage somewhere ... that's the same kind of thing that elicits 'oh my , they wouldn't want warrants with prices like that unless they thought the PPS was going to go there! Whoopee , we're saved!'

In connection with the SPA, the Company also issued on the Closing Date; (a) a warrant for the Investor to purchase 100,000,000 shares of Common Stock at an exercise price of $0.02 per share, which such warrant expires on July 29, 2015,(b) a warrant for the Investor to purchase 100,000,000 shares of Common Stock at an exercise price of $0.04 per share, which such warrant expires on July 29, 2015, (c) a warrant for the Investor to purchase 125,000,000 shares of Common Stock at an exercise price of $0.05 per share, which such warrant expires on July 29, 2015 and (d) a warrant for the Investor to purchase 125,000,000 shares of Common Stock at an exercise price of $0.075 per share, which such warrant expires on July 29, 2015 (collectively, the "Warrants")

I wonder if those warrant quantities stay the same in the event of a 1:100 Reverse Split? Probably not ..... surely they'd be reduced proportionately ... surely.

As always , just one man's reminder of facts , along with a smattering of opinion.

jonesie