NeoMedia Technologies, Inc (NEOM)

[RisknReturn]

Wilma, I don't believe appraisal rights can hold up the RS in any way. If the existing investors feel the RS diminishes the value of their shares, it allows them a remedy where the Court can force NEOM to pay the difference in value lost due to the merger and RS. Of course that would also assume that NEOM had the capability to pay the damages...

If I read it correctly, I believe the shareholders electing appraisal rights would have to pay their own costs to file suit and those costs might be recoverable depending on the outcome.

My opinion is that it would be foolish to assert appraisal rights because it would be easy for NEOM to use its own financials to conclusively show that the common equity is worthless (long before and after the RS). Therefore, I believe there is little or no chance of being awarded damages through the appraisal process.