NeoMedia Technologies, Inc (NEOM)

[FORTY-8]

To Dmaze: I couldn't for the life of me understand why he bought what he did. There are billions of shares now outstanding. He purchased approximately 115M. A small dent in the O/S. Then it occurred to me that each time he buys it excites others (both traders and investors) to also buy, which drives up the PPS, which, in turn, causes YA to sell (at a then inflated price), which reduces the company's debt to YA. Why would the Doctor do the company such a favor, especially since the true treasure in the company can only be had by purchasing the preferred shares?

Only this makes sense to me: if and when he negotiates the payment of company debt with YA and then makes an offer to buy up the remaining common in order to give him control, any purchases of common that he now makes saves him from having to do so later (probably at a greater price), and (most importantly) he will not have to pay any premium to obtain those common shares.