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Re: cloud8 post# 9578

Monday, 04/04/2005 4:51:04 PM

Monday, April 04, 2005 4:51:04 PM

Post# of 326396
My take on the Cornell deal is that long term it gives Neomedia a source of capital that they can easily tap at their discretion. The problem is that it if they do tap into it will dramaticly increase the float.

With Cornell potentially having such a large position my hope is that they would eventually look for a a white knight to come in and buy Neomedia and them out instead of trying to unload such a large position in the market however I am sure they do have an exit strategy in place to unwind their position at a certain price without hurting the share price. It is anyones guess what that price would be, 40 cents, 60 cents, 1.00, etc. etc. but at whatever level that is it could be a ceiling on the stock that will take time to work through.