By Devika Patel
Knoxville, Tenn., Aug. 4 - NeoMedia Technologies, Inc. arranged an $8.65 million private placement of convertible debentures with investor YA Global Investments, LP on July 29, according to a company news release and an 8-K filed Monday with the Securities and Exchange Commission.
The company settled a $2.33 million tranche at closing.
The two-year debentures mature July 29, 2010. Interest accrues at 14% per annum and is payable at maturity.
YA may elect to convert the debentures at an time at a conversion price equal to the lesser of $0.02 and 95% of the lowest volume weighted average price of the company's common stock during the 10 trading days immediately preceding each conversion date.
The company may redeem the notes at a 10% premium to par.
YA also received a warrant for 100 million common shares, exercisable at $0.02, another warrant for 100 million shares, exercisable at $0.04, a third warrant for 125 million shares, exercisable at $0.05, and a fourth warrant for 125 million shares, exercisable at $0.075. All warrants expire on July 29, 2015.
The funds will accelerate implementation of NeoMedia's aggressive go-to-market plans under new chief executive officer, Iain McCready. These plans will focus on providing mobile barcode scanning infrastructure to carriers, NeoReader scanning software to handset manufacturers and code implementation products to the advertising community.
NeoMedia is a technology company based in Fort Myers, Fla.
| Issuer: | NeoMedia Technologies, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $8.65 million
|
| Maturity: | July 29, 2010
|
| Coupon: | 14%
|
| Price: | Par
|
| Yield: | 14%
|
| Conversion price: | Lesser of $0.02 and 95% of the lowest volume weighted average price of the company's common stock during the 10 trading days immediately preceding each conversion date
|
| Warrants: | For 450 million shares
|
| Warrant expiration: | July 29, 2015
|
| Warrant strike price: | $0.02 (for 100 million shares), $0.04 (for 100 million shares), $0.05 (for 125 million shares), $0.075 (for 125 million shares)
|
| Investor: | YA Global Investments, LP
|
| Settlement date: | July 29 (for $2,325,000)
|
| Stock symbol: | OTCBB: NEOM
|
| Stock price: | $0.0071 at close Aug. 4
|
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