Company sells 14% secured convertible debentures due 2012 in placement
By Devika Patel
Knoxville, Tenn., July 1 - NeoMedia Technologies, Inc. completed a $250,000 tranche of a $1.05 million secured convertible debenture private placement with YA Global Investments, LP on June 28, according to an 8-K filed Friday with the Securities and Exchange Commission. The debentures are being sold in three tranches of $250,000, $450,000 and $350,000, which will settle on June 28, July 15 and Aug. 15, respectively.
The 14% debenture is convertible into common shares at a conversion price equal to the lesser of $0.10 and 95% of the lowest volume-weighted average price of the stock during the 60 trading days immediately preceding each conversion date. The note matures July 29, 2012, and interest is payable at maturity. It may be redeemed at a 10% premium.
The investor also received a five-year warrant for 3 million shares, each exercisable at $0.15. The strike price is a 275% premium to the $0.04 closing share price on June 28.
NeoMedia is a mobile barcode technology and infrastructure solutions company based in Atlanta.
| Issuer: | NeoMedia Technologies, Inc.
|
| Issue: | Secured convertible debenture
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| Amount: | $1.05 million
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| Maturity: | July 29, 2012
|
| Coupon: | 14%
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| Conversion price: | The lesser of $0.10 and 95% of the lowest volume-weighted average price of the stock during the 60 trading days immediately preceding each conversion date
|
| Call: | 10% premium
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | June 28, 2016
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| Warrant strike price: | $0.15
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| Investor: | YA Global Investments, LP
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| Settlement dates: | June 28 (for $250,000), July 15 (for $450,000), Aug. 15 (for $350,000)
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| Stock symbol: | OTCBB: NEOM
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| Stock price: | $0.04 at close June 28
|
| Market capitalization: | $2.3 million
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