Chuck, it's not a 20% stake for $5Mil.
Instead it reads as follows:
We have good reason to believe that a big equity/licensing deal with a Fortune 100 firm is now firmly on the table. And if such a deal is consummated, then we could see NEOM shares at $1 or more as a result.
It appears that NEOM borrowed $10 million from Cornell Capital to prepare for this deal. Put yourself in NeoMedia’s position -- if you had a Fortune 100 firm like Microsoft or Intel considering taking a 19.9% position in your company and a licensing deal for $5 million, would you want to make the final terms with $2 million in the bank?
So we are talking a 20% equity stake "plus" a $5Mil. licensing deal.
All the Best, JP