e.Digital Corporation (fka EDIG)

[Cassandra]

It means that the legal incentive is to sell before converting to cover the short position for a guaranteed profit. This works at any price.

The warrant prices are a nice headfake IMO to give the impression that they expect the stock price to rise. However, even though they are out of the money, the EDIG allows the financiers to use them as an "offsetting long position" to allow them to short 3 million more shares than they have available to them in the conversion formula. Very slick I must say.

These guys know how to play EDIG like a fiddle. Seems they know when they can short as well as when to support or push the share price. I wouldn't be at all surprised to see the share price close up today to give confidence that all is well.