By Sheri Kasprzak
Atlanta, April 1 - NeoMedia Technologies Inc. said it has received a $100 million standby equity distribution agreement from Cornell Capital Partners LP.
The agreement allows NeoMedia to sell shares to Cornell at 98% of the lowest closing bid price during the five-day period following a notice of purchase.
The term of the agreement is two years, and there is a $2 million limit on each draw.
Cornell also received warrants for 50 million shares, exercisable at $0.20 each for three years, as well as a commitment fee of $1 million.
Based in Fort Myers, Fla., NeoMedia resells hardware and software from manufacturers.
| Issuer: | NeoMedia Technologies Inc.
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| Issue: | Standby equity distribution agreement
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| Amount: | $100 million
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| Price: | 98% of the lowest closing bid price during the five-day period following notice
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| Tenor: | Two years
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| Warrants: | For 50 million shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.20
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| Investors: | Cornell Capital Partners LP
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| Settlement date: | March 30
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| Stock price: | $0.23 at close March 30
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