Company sells 9.5% secured convertibles due Aug. 1, 2013 with warrants
By Devika Patel
Knoxville, Tenn., June 7 - NeoMedia Technologies, Inc. settled a $450,000 secured convertible debenture private placement with YA Global Investments, LP on June 1, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced April 26 and was revised on May 25.
The 9.5% 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 Aug. 1, 2013, and interest is payable at maturity. It may be redeemed at a 10% premium.
YA Global also received warrants for 1.25 million common shares. Each warrant is exercisable at $0.15 until June 1, 2017. The strike price is a 650% premium to the April 25 closing share price of $0.02.
NeoMedia is a technology company based in Fort Myers, Fla.
| Issuer: | NeoMedia Technologies, Inc.
|
| Issue: | Secured convertible debenture
|
| Amount: | $450,000
|
| Maturity: | Aug. 1, 2013
|
| Coupon: | 9.5%
|
| 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 1 million shares
|
| Warrant expiration: | June 1, 2017
|
| Warrant strike price: | $0.15
|
| Investor: | YA Global Investments, LP
|
| Pricing date: | April 26
|
| Revised: | May 25
|
| Settlement date: | June 1
|
| Stock symbol: | OTCBB: NEOM
|
| Stock price: | $0.02 at close April 25
|
| Market capitalization: | $13.3 million
|
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