jonesie, which point do u c? My post was deleted. Was it in response to a question from Neotechnician, asking what the relevancy was to the takeover offer I described where the # of shares issued was given a maximum? I'm surprised the NYSE company protected their shareholders while the NEOM BOD left us open to gigantic and spiralling dilution and hurt all of us, and was prone to if NEOM stock started to fall and create a snowball gaining in magnitude racing down the hill and coming to a stop @ 1 cent per share and costing shareholders hundreds of millions in losses. Dr. Mike
.... as we continue this discussion about various options open to Cornell/Yorkville when it comes to Neomedia, and about YA's possible inclinations and history when given such options:
Neomedia may or may not be in default. If not, they're close.
Yorkville Advisors might not care. They might not exercise their rights in a default situation.
I asked around, like I said I would, to find out what happened between NXNO and Cornell (mentioned in the post I am replying to). That came out of an IHUB poster having said ABEW was in a similar situation to NXNO/Cornell, in which he thought Cornell might have shorted NXNO helping to trigger a default.
Here's what I learned:
This seems to be fact: "Cornell seized all their (NXNO's) assets, then assigned the rights to TTGL in exchange for 9 million dollars worth of new debentures between TTGL & Cornell."
TTGL is in fact Titan Global Holdings, a current Yorkville Advisors client.
This was speculation put forth by my source: "Cornell believes they have a better chance to get paid back from TTGL then they did with NXNO so they moved the debt from one company to another by seizing everything from NXNO."
As it happens, Cornell may have been right. TTGL is one of the few Cornell clients to be up in PPS for very long after a Cornell financing. As of 12/28/07 TTGL was at $1.48/sh, up 85% since 10/16/06, the date of a $6MM Convertible Debenture.
So, I find all of that to be at least interesting. Cornell will at times do what it wants to do with IP or assets that it owns by virtue of a client defaulting on its financial obligations to Cornell.
Apparently Cornell will do what it thinks is best for Cornell.
Imagine how the NXNO shareholders felt? NXNO was .002 on 12/28/07.
FYI and FWIW
jonesie
p.s. Oh, I ran across this while doing the research on the NXNO/Cornell stuff:
"Robert Farrell, our Chief Executive Officer and Joseph W. Donohue, Jr., our Chairman of the Board of Directors co-founded Cornell Capital Partners, LP.
In November 2003, Mr. Farrell and Mr. Donohue left Cornell Capital Partners, LP to form Sagamore Holdings. Cornell Capital Partners, LP and Yorkville Advisors Management, LLC are controlled by the same natural person."
"Sagamore Holdings, Inc. (the "Company" or "Sagamore Holdings") is a holding company that was formed and incorporated in the State of Florida on August 30, 2004 to acquire substantially all of the net assets of Nexus Custom Electronics, Inc. (NXNO) ("Nexus"), a wholly-owned subsidiary of Jaco Electronics, Inc. ("Jaco"), through its newly formed, wholly-owned subsidiary, NECI Acquisition, Inc. ("NECI").
So, two co-founders of Cornell Capital Partners left Cornell, created Sagamore Holdings, acquired NXNO, borrowed money from Cornell, defaulted on the deal letting Cornell have NXNO's IP/assets and give it to TTGL, another holding company, which possibly would have a better shot at a higher share price by virtue of a new name, new symbol, new shareholders, new etc.
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