hi levy,
NeoMedia Technologies, Inc., to Raise Up to $6 Million Through Warrant-Repricing
siliconinvestor.com
"Charles W. Fritz, chairman, president and CEO of NeoMedia, said repricing warrants "increases float, decreases overhang, and provides low-cost funding."
So why all companies don't start with warrant-repricing??
or is it another trick out the hat?
This is my translation of the deal:
Neom was looking for users of the "print to internet" standard. Did a deal with Digital Convergence. "A 100 million+ 10 year licensing deal."
DC got 1,4 million shares when the share price stood at 6 dollars. It promised to pay in cash on Jan 1. 2001.
Now it turns out that the shareprice is lower. DC did not pay, buy the income was booked in the quarter for Neom.
Now it turns out that DC did not actually pay, but got a credit of Neom for the amount of the payment. Current news item indicates that DC gets another 3 months to pay the initial sum. Neom gets a share of the proceeds of the sale of the warrants, under the current share price.
It is not my intention to be negative, but I don't like it that Neom present all news as exciting good news, hiding what really is going on.
Regards,
Pareto
(click on the penguin on sitios.cl to see some pictures of Mike Levin, you once recommended to me) |
