Next lets look at Neomedia stock.
I have been saying for months and months Neomedia has exceeded its authorized share count with the convertible debt etc. The company is now reporting the fully diluted share count is at over 9 billion if all instruments are converted. Almost double the 5 billion share count authorized by a vote of the shareholders. Yet they are continuing to do more financing monthly, with debt instruments promising more shares they are not authorized to issue.
There is even a statement in the filing stating they can not cover the number of shares required to convert, using their authorized limit.
So what happens when YA forces a conversion, and Neomedia has no shares?
There is also a statemtn that all assets are pledged against several of the convertible debt instruments, not just the 5 million one recently spoken about in another forum. It also states that NEOM can not offer interest in any of its assets to anyone for new financing, since they are all pledged to YA at this time. So where is that outside financier going to come from, when NEOM has no collateral to offer them.
It also states that due to Neomedias default, YA has called the debts due, and can foreclose at any time Neomedia stops making a payment on the debts and can not pay them, which is any day.
Add to that the fact that Neomedia is essentially broke, with only 200,000.00 as of march 31st, and it tells you they are in deep deep do do.
Even the 300,000.00 they recently gort from YA is more then likely spent by now, since their report shows they are still burning about 1.5 million cash a quarter in ongoing operations, or about 500,000.00 a month. So add the 350,000.00 to the 200,000.00 cash they had on hand at March 31st, and that gives you about 550,000.00 cash or about a months worth of operating time, thus taking you to April 30th from the March 31st date. We are now in the middle of May, so i expect Neomedia is now broke once again. |
