e.Digital Corporation (fka EDIG)

[HotrodHans]

Cass..well ...looks like Cats 5 may have something and may be right...refering to the previous post.........

Subject: RE: Here it is Hans, go post it./CATS5
From catsfive
PostID 396725 On Saturday, April 16, 2005 (EST) at 6:44:31 PM
Response To: hotrodhans PostID 396719

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http://www.agoracom.com/nonmemforum/msgreview.asp?id=396725&refid=396719&orig=396645

Here is the pertinent paragraph

During the period commencing November 19, 2004 and terminating November 30, 2004, the company issued 18,750 shares of 8% Series EE preferred stock for gross cash proceeds of $1,875,000. The stated dollar amount of Series EE preferred stock, is convertible into fully paid and nonassessable shares of common stock at a conversion price of $0.25 per share which is fixed for the first 90 days following the original issue date, and commencing 90 days following the original issue date, the conversion price shall equal the lower of
(i) $0.25 and (ii) 85% of the average of the volume weighted average price per share of any ten days during the twenty consecutive trading days immediately preceding the conversion date. The maximum number of shares of common stock that the company is required to issue upon conversions of the Series EE preferred stock and payment of dividends thereon in shares of common stock is 11,294,738, except as may be subsequently modified as a consequence of certain possible penalties and other adjustments. The Series EE preferred stock shall be subject to automatic conversion on or about November 18, 2006 subject to certain conditions. At December 31, 2004, the Series EE Stock was convertible into approximately 7,469,648 shares of common stock. The company also issued to the purchasers of the Series EE preferred stock, warrants to purchase 4,070,000 shares of common stock at $0.50 per share until November 18, 2007. The company incurred total placement agent fees of approximately $129,500 in cash and, in connection therewith, issued to such placement agent 370,000 warrants.