NeoMedia CEO Comments on Recent 8-K Filing
Atlanta, January 14, 2010 – Today NeoMedia Technologies, Inc. (OTC BB: NEOM), released the following message from Iain McCready, CEO:
Dear NeoMedia shareholders and stakeholders,
On Monday, January 11, 2010, our Company filed a Form 8-K with the U.S. Securities and Exchange Commission which disclosed a transaction between NeoMedia and YA Global Investments, L.P. (“Yorkville”). Yorkville has consistently funded our operations, investing over $50 million since 2006. Yorkville has much to gain from their investment, but no investor has more to lose.
Until we begin to generate sufficient positive cash flow we will continue to require additional investments, which we will seek from Yorkville and/or other investors. Because of our prior agreements with Yorkville, investments by other investors require Yorkville’s approval. We believe that Yorkville may be open to approving investments by others, as they have been willing to do so in the past.
We are a company which, until recently, has been ahead of its time. This investment provides us with funds so that we can continue to execute upon our business strategy. Additional funds will be required for us to fully execute our strategies. Any investment includes risk, and it is our commitment to all of our investors, including Yorkville, to continue to work to accelerate our market leadership by leveraging the important initiatives we have embarked upon.
Broadly, these initiatives include:
Expansion in Europe; North and South America
Investments in new and deepening partner channels as the mobile barcode ecosystem continues to mature
Continuing work with handset providers which are now pre-loading the NeoReader application
Active participation in the establishment of standards which ensure that barcode advertising campaigns work nationally and internationally
We appreciate the frustration our shareholders feel, and even more so appreciate your continued confidence and belief that NeoMedia will reach that day when the industry and the marketplace recognize our success. We hope that our investors will continue to follow our progress, the progress of our competitors and the broader ecosystem.
In the near future we will file the proxy statement for the Special Meeting of Shareholders. This document will include further information about the company, the proposals and the meeting itself. At the meeting there will be opportunities to discuss the business and for our shareholders to voice opinions and share ideas in an open, constructive setting.
Iain A. McCready
Chief Executive Officer
About NeoMedia Technologies:
NeoMedia Technologies, Inc. (OTCBB: NEOM) is the global leader in mobile barcode scanning solutions. Our technology allows mobile devices with cameras to read 1D and 2D barcodes and provide “one click” access to mobile content. Combining this technology with advanced analytics and reporting capabilities revolutionizes the way advertisers market to mobile consumers.
NeoMedia provides the infrastructure to make 2D camera barcode scanning and its associated commerce easy, universal, and reliable – worldwide.
The company’s mobile phone technology, NeoReader, reads and transmits data from 1D and 2D barcodes to its intended destination. Our Code Management and Code Clearinghouse platforms create, connect, record, and transmit the transactions embedded in the 1D and 2D barcodes, like web-URLs, text messages (SMS), and telephone calls, ubiquitously and reliably.
This release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.