By Sheri Kasprzak
New York, Aug. 30 - NeoMedia Technologies, Inc. is gearing up to settle a $5 million private placement.
Cornell Capital Partners, LP agreed to buy the 10% secured convertible debentures due Aug. 24, 2008. The debentures are convertible into common shares at a price equal to 90% of the lowest closing bid price for the 30 days before conversion.
The investor will receive warrants for 125 million shares. Of the warrants, 25 million are exercisable at $0.15 each for five years; 50 million are exercisable at $0.25 each for five years; and 50 million are exercisable at $0.20 each for five years.
Connected to the deal, the company reduced the strike prices of 85 million existing warrants held by Cornell to prices ranging from $0.10 to $0.15 from $0.25 to $0.50.
Based in Fort Myers, Fla., NeoMedia, operating under the PaperClick brand name, develops technologies used to link information to the internet.
| Issuer: | NeoMedia Technologies, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $5 million
|
| Maturity: | Aug. 24, 2008
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | Equal to 90% of the lowest closing bid price for the 30 trading days before conversion
|
| Warrants: | For 125 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.15 for 25 million shares; $0.25 for 50 million shares; $0.20 for 50 million shares
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | Aug. 24
|
| Stock symbol: | OTCBB: NEOM
|
| Stock price: | $0.13 at close Aug. 24
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
