e.Digital Corporation (fka EDIG)

[Cassandra]

9 miles: The company has been surviving on selling shelf shares and getting outrageously-priced loans for well over a year. Even the previous loans ended up being converted to toxic convertible preferred shares, which are convertible to common shares at the request of the Preferred Convertible Shareholders (CPS). These CPS holders can short the stock and cover by converting, which is why this kind of financing is called "death spiral" or "toxic" financing.