e.Digital Corporation (fka EDIG)

[JimC1997]

talons, I am just a shareholder here, like you. The reason that I feel more confident about the company's future today than I did before the debt was restructured is quite simple.

Had the lenders demanded payment at December 31 the company would likely have been forced into bankruptcy and we shareholders would have been in much worse position than the potential issuance (through conversion) of an additional ten million shares puts us.

The inability to repay loans is what usually puts companies into bankruptcy. E.Digital resolved that problem (which could have turned into a major crisis) with the equity swap and reduced their cash outflow requirements with the restructuring of the one remaining loan.

Why wouldn't any rational shareholder feel better about the company's future after that event?

I bought more shares in December after seeing the comments from management that a favorable resolution of the debt issue was likely. You may recall that I posted here on December 18 that the debt problem was one of three significant matters which shareholders should monitor and that a favorable outcome would reduce the risk faced by all investors.