NeoMedia Technologies, Inc (NEOM)

[krays]

Hi YJ, I've been there and done that and I agree completely.

The Series C convertible preferred stock is currently classified outside of Shareholders’ Equity in the mezzanine section of our balance sheet. The change in estimate in the number of shares converted resulted in a reduction in the preferred stock outstanding of approximately $5.6 million, and a corresponding reduction in the accumulated deficit of $3.0 million related to the deemed dividends, and $2.6 million recorded as an increase to additional paid in capital.


This "distribution" of Series C is what is peaking my curiosity now. What if; YA has sold off all of their Series C to another entity whose intention is to take control? What better method of stealth could you come up with than to buy out these instruments which at a time of your choosing (if you choose) will convert into a billion shares thereby effectively buying out at least 20% of the company and not having to report it as a beneficial owner? If you coupled that with a pending agreement to pre pay all the debentures the acquiring entity would now control the IP and the senior debt of the company and YA would be out of the picture except for the warrants.

How much would it cost to take control? How much would YA require to release the stranglehold? Are they on the way out of the picture? Can we see an end to dilution altogether? So many questions, so few answers

Pure speculation on my part here, but I can envision that it just might be in the works! GLTA