e.Digital Corporation (fka EDIG)

[chipperca]

In reading the details of this financing scheme, it does not present itself as a "floorless" convertible. It seems that the floor is at 19 cents, and the owners of the convertible will only short the stock until it hits that point. The floor can only change if the company sells stock for less than 19 cents.
What I dont understand is why the company would go to the extreme of this fairly complicated transaction as opposed to simply selling stock on the open market. This was an expensive way to go considering finders fees, dividends, and probably expensive legal fees. Hopefully they will fully explain the reasons at the sharholder meeting.