e.Digital Corporation (fka EDIG)

[Cassandra]

OT: This appears to be why ONT is rising. If EDIG bagged a similar deal, it might rise too. However it has that extra 93 million shares to drag around.

On2 Technologies continues to shine

If you read this column before the market opened on Tuesday, you learned that On2 Technologies (ONT: news, chart, profile), its shares changing hands for 74 cents, had just bagged a big contract.

Since the column first appeared, the stock popped as much as 90 percent to $1.39. Shares closed Wednesday's session at $1.22.

The tiny, New York-based company agreed to license its video-compression technology to a group that includes several of China's largest consumer-electronic makers.

The group, Beijing E-World Technology, also will buy 1.8 million shares of On2's stock and 700,000 warrants at 67.5 cents, or a 10 percent discount of 75 cents, which was On2's price as of Friday.

This works out to about $1.7 million for 2.5 percent to 3 percent of On2. "This is a huge deal," said Doug McIntyre, On2's president and chief executive officer, who noted that the deal had taken 15 months to complete. "By a wide margin, it's the biggest deal in the company's history," he added.

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...