NeoMedia Technologies, Inc (NEOM)

[Poptech]

lesn: As we discussed during the shareholder vote, if shareholders did not approve a dilution mechanism, NeoMedia would be insolvent. Since January 2011, NeoMedia has been unable to even meet the interest obligations. With no dilution, NeoMedia is insolvent. As of the last 10Q, they had to borrow again and did not have sufficient cash to pay even one month of interest.

The timeline I presented was an argument against the repeated assumption that YA would move quickly to default NeoMedia. Using one example, I showed that assumption did not match YA's historical actions.

Now that it is clear there was no buyer for the debt SOON after the shareholder meeting, we are most certainly marching toward a full default. The SEC lawsuit against YA emphasized that YA had to move quicker on eliminating these types of investments from their fair value analysis. When that happens, YA sets the value of NeoMedia to $0, and then they have nothing left to lose by calling for a conversion. However, in NeoMedia's case, YA doesn't have full control of a default. With in kind program, they have spread that decision among private investors unrelated to NeoMedia.

"A vote for no on the R/S is much like the vote of one to become a suicide bomber, taking others out as they take themselves out ..."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91359233

It is tough to now argue, the vote didn't matter.