e.Digital Corporation (fka EDIG)

[owd3]

Christmas comes early for the "financiers"……

"The Investors were given registration rights under a Registration Rights Agreement requiring e.Digital to file a registration statement respecting the Common Stock within 30 days following the closing date of the purchase agreement. If the registration statement covering the shares held by the Investors is not filed within the timeframe specified in the Registration Rights Agreement, e.Digital will be obligated to pay liquidated damages to the Investors equal to 1.5% per month of the amount invested by the Investors. In the event that the registration statement is not declared effective by the Securities and Exchange Commission on or before the 120th day following the closing date, then e.Digital will be required to pay additional liquidated damages to the Investors equal to 1% per month of the of the amount invested by the Investors."

$1,277,000 x 1.5% = $19,155 for the first month. The locked in profit wasn’t enough, they had to backdoor them another $20K!!! and counting!!!!

A $20K early Christmas gift as a result of management not doing what they needed to do. Perhaps they were too busy reading Internet stock boards.