e.Digital Corporation (fka EDIG)

[Cassandra]

FF: When you look at the financial situation, there is no other way to interpret the need for the shares. They have a serious working capital deficiency

Not only do they need to increase authorized shares, but they will need to register some in the not too distant future and will likely sell them to friendly and not-so-friendly financiers again through a PIPE deal or direct sales. Either way, it will put downward pressure on the share price. If they sell shares below $0.19, it resets the conversion price for the remaining Series D and EE CP shares, which are currently out of the money. This will require more shares to be reserved for conversion. The cycle could repeat itself over and over each price being lower until all of the CP shares are converted.

The theories being promoted on agoracom are absolutely absurd. It's hard to believe that anyone really thinks that the 100 million shares are for Wencor, to give it 1/3 ownership of e.Digital. Why in the world would Wencor want to own any part of e.Digital? Why would any business pay millions of dollars to buy into a company with negative book value and a history of failure?

http://www.agoracom.com/nonmemforum/msgreview.asp?id=412913&refid=412839&orig=412628

It's too bad that the agora posters aren't spending their time looking at potential ways to get this company on a real track toward self-sustaining survival and eventually profitability instead of spinning all the ways that things are so good for e.Digital and by supporting management, everything will turn out well.

Unless there is a major overhaul, no one is going to get their money back. The inevitable will merely be postponed with the buyers of the new shares throwing good money after bad.