By Sheri Kasprzak
New York, Feb. 21 - NeoMedia Technologies, Inc. said it has concluded a $27 million private placement of series C convertible preferred stock.
Cornell Capital Partners, LP purchased the preferreds, $3,208,702 of which were sold for the surrender of that principal amount of 8% convertible notes.
The preferreds are initially convertible into 100 million common shares at $0.27 each.
Cornell received warrants for 20 million shares, exercisable at $0.50 each for five years; warrants for 25 million shares, exercisable at $0.40 each for five years; and warrants for 30 million shares, exercisable at $0.35 each for five years.
Proceeds will be used for general corporate purposes.
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.
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| Issue: | Series C convertible preferred stock
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| Amount: | $27 million
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| Conversion price: | $0.27
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| Conversion ratio: | Into 100 million shares
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| Warrants: | For 75 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.50 for 20 million, $0.40 for 25 million, $0.35 for 30 million
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | Feb. 17
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| Stock symbol: | OTCBB: NEOM
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| Stock price: | $0.389 at close Feb. 17
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