you are now changing your position...
You wrote this earlier:
"To be sure, it would be a great relief to shareholders if the damage from the new shares were already done, but it is not possible for it to have been done legally."
I gave you a step by step scenario that shows you exactly how it was possible. Showed you filings that indicated that was exactly what was happening, all legally. Now you claim your position all along was:
" My very simple point is that the conversion shares can not be sold into the market until they are registered, nor can they be used to cover a short position until registered."
Selling CP shares into the open market or using them to cover prior to registration was nothing I ever put forth as a possibility. I was suggesting that that it was possible to legally do what you insisted above could not be done. Are you now backing off you "the damage can't legally be done" statement ??
(The whole "unconditional contact" was merely a side-bar over whether it would even be considered a "short sale" under the circumstances and may have confused the issue.)
You also wrote this:
"Therefore, I believe that shareholders should take the upcoming large scale dilution into consideration in their investment decisions.
If you are not certain that the shares have already been sold into the market, you may be doing a disservice to shareholders by removing the concern that they remain to be shorted."
First time I was ever accused of "removing concerns" of EDIG shareholders, but I stated all along I may be wrong. Plus my example clearly shows that there is still a concern out there, the lower the price goes, the more "free shares" get handed out in the end. And those will either be dumped or used to restart the cycle all over again.
And finally…
" Your scenario also shows that covering the short position also happens after the registration becomes effective. Until then you have a traditional short position using borrowed shares.
The CP shares don't require any shares to be borrowed. After the registration is effective, they can convert anytime they want which allows them to sell the stock short and then covert to close their short position."
But the difference is that if they do what I am suggestion what can LEGALLY be done (and appears to have been done) there is no risk at all in buying the CP shares and it is in fact a locked in minimum profit.
Going your route involves a HUGE risk and no sane person would take that chance with this company (sheep excluded).
Just take a look at the filings and the price points before and after, the damage is always inflicted prior to the filings. A year or so ago I even suggested you could predict when CP's were coming based on the price action. The damage continue after as well, the free shares will do that, but it always starts before.
AI
