NeoMedia Technologies, Inc (NEOM)

[Poptech]

vero: He was not "owed" money. He owned a portion of the YA fund which owns NeoMedia. So he was already an indirect owner. One of the options of the fund's investor is take shares from portfolio companies when they exit the fund. Obviously, it is an advantage do so when an asset is undervalued.

So, good news, Cline sees upside for NEOM.

This type of a transaction is a good thing for everyone. If this were illegal, YA would have to liquidate in an untimely manner which would crash the underlying securities. This is not the first time they have done this with NeoMedia and they have had many such transactions over the years with other portfolio companies.

The sell-off on the 18th was not due to Cline. It was due to the entity which transferred him the shares - the only other shareholder with that large of an ownership position. Can you imagine what would have happened if YA was forced to convert and sell that additional volume into the market? PPS WOULD have dropped below a penny. Again.

So YA knew two things on the 18th. Cline would liquidate a portion of his holding and Klawmonn was refiling. Knowing these simultaneous transactions could further undermine the PPS, they sold into the market to take some profit. Thus a trifecta and the PPS collapsed.

If you want to point fingers, Cline and NeoMedia are not to blame.