NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

clawmann, I thought there was an excellent thread ...

... between you and csykes the other day. I'm surprised it did not elicit more conversation than it did.

Posted by Csykes:

"The reason YAGI can't own more than 4.99% is due most likely to it being some form of convertible PIPE financing. In most cases, when the shares are converted, they are used to cover short positions by the note holders.

It is legal, and common, for a note holder, to work in conjunction with a broker dealer, to short shares in anticipation of a conversion. Once the conversion is made, the shares are used to cover the shorted position."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39236375

clawmann, part of your reply:

" the holder is contractually prohibited from short selling the isssuer's shares.

Second, in this case, shorting the shares would drive down the PPS and - under the conversion formula stipulated in the certificate of designations - the lower PPS would mean the holder gets more shares on conversion; so the short-selling could easily be theorized to be motivated by manipulative intent. I.e. possibly illegal as well as being contractually prohibited."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39236910

clawmann, is there language in YAGI/NEOM financing documents preventing YAGI from shorting? I remember us looking for it at one time, perhaps finding some way in the past ... but, currently? I mean, this is what 'hedge funds' do, they play both sides of the court for their deep-pocketed accredited-investor clients, using every sophisticated tool at their disposal, without necessarily broadcasting to the shareholders in their client/victim/target companies exactly what they are doing.

regards,

jonesie