niz: e.Digital has never been able to get conventional financing even when it was trading in the double digit dollars per share!
One of the reasons they were denied a NASDAQ listing was because of the abysmal balance sheet. In a last ditch effort, they issued the Series C Convertible Preferred shares in Sept. 2000, which was the worst kind of toxic, death-sprial financing vehicle. But that was all the company could get, despite the fact that they were still holding out hope of being listed on NASDAQ.
e.Digital's financials and horrible credit rating render it completely unworthy of any kind of normal financing. Any serious investor should pull a Dun & Bradsteet report on the company.
Check out what happened with the Immanuel Kant loan, the mysterious offshore backers of which controlled the ability of e.Digital to sell its shelf shares. It is highly likely that these backers shorted EDIG down to the 30 cent range. Additionally, the effective interest rate ended up being 65.5%.
e.Digital is currently in default on its $750,000 15% loan since it is unable to pay even the interest only payments of $7,500/mo. The lender has agreed to a forebearance agreement to put off foreclosure.
No conventional lender would touch e.Digital.
