NeoMedia Technologies, Inc (NEOM)

[krays]

YJ or anyone else, I have asked this question before and tried to find the answer on my own but still don't know.

If NEOM had the funds available, do they have the option to buy back the Series C shares or does YA have the right to keep them indefinitely?

This is a very important question IMO, because these shares not only contain an embedded conversion feature, they also carry voting rights and currently represent a majority of the vote (barely at PPS of .0135). If I was in YA's position, and I held the majority interest and the majority vote in a certified gold mine with proven reserves equal to many times my investment I would not sell those rights back to the issuer at original cost plus interest unless I had to. The answer to this question contains a big portion of the answer that we all want to know.

If NEOM starts generating revenue and positive cash flow sufficient to pay off the debt, how many shares will ultimately comprise the OS? As of the latest information from the proxy filing in November, and current PPS, the Series C represent 1.4 billion votes (PPS .0135) and minimally 1.2 billion shares (if converted at .02 or higher).

If NEOM is able to retire those shares, the majority vote belongs to the common shareholder and additional dilution is much less likely.

I do not think that YA wants to relinquish the voting majority at this time, which IMO makes it much less likely that they will continue to convert Series C shares, as doing so returns both equity and votes to the common shareholder.

Feedback from anyone is appreciated. TIA