Replies to post #72878 on e.Digital Corporation (fka EDIG)

[friendlyfred]

Ah, just another one of those investors with vision taking profits. Lol

[Cassandra]

HrH: Yesterday's form 144 registered additional common shares for Bristol Investment Fund, Ltd., one of the off-shore hedge fund financiers of the Series EE CP share deal.

http://www.investorshub.com/boards/read_msg.asp?Message_id=6102707

When the conversion price dropped from $0.19 to $0.08, the number of shares into which each remaining CP share could be converted more than doubled. The number of shares previously registered and reserved for conversion of Bristol's Series EE CP shares was then insufficient. Because Bristol sold more than were registered for them, EDIG had to file a form 144 to register the additional shares Bristol sold (sale was supposedly on 3/8/06).

All of the other convertible financings now need additional shares to be registered with the lowering of the conversion price accross the board to $0.08. The number of shares to be registered in the upcoming S-1 or S-3 will be staggering - much more than most longs expect.

This weekend, I will update the numbers of new shares I posted previously in: http://www.investorshub.com/boards/read_msg.asp?Message_id=8511830 I will need to add the recent $1.5 financing at $0.08 and the additional $250,000 in convertible notes.

I always find it interesting how they manage to get these big inexplicable run-ups that coincide with the pricing of financings and provide liquidity to the financiers to unload their shares.

There are probably some new bagholders who were just trying to swing trade the momo without knowing about the backlog of shares waiting to be registered and dumped at anything over $0.08.

Bristol did very well and appears to have achieved much better than a double in selling at an average of over $0.16 and converting to cover sales at $0.08. No doubt some of the other CP shareholders were unloading into the momo and raking in the profits as well.