Replies to post #40638 on e.Digital Corporation (fka EDIG)

[Cassandra]

OT: This appears to be why ONT is rising. If EDIG bagged a similar deal, it might rise too. However it has that extra 93 million shares to drag around.

On2 Technologies continues to shine

If you read this column before the market opened on Tuesday, you learned that On2 Technologies (ONT: news, chart, profile), its shares changing hands for 74 cents, had just bagged a big contract.

Since the column first appeared, the stock popped as much as 90 percent to $1.39. Shares closed Wednesday's session at $1.22.

The tiny, New York-based company agreed to license its video-compression technology to a group that includes several of China's largest consumer-electronic makers.

The group, Beijing E-World Technology, also will buy 1.8 million shares of On2's stock and 700,000 warrants at 67.5 cents, or a 10 percent discount of 75 cents, which was On2's price as of Friday.

This works out to about $1.7 million for 2.5 percent to 3 percent of On2. "This is a huge deal," said Doug McIntyre, On2's president and chief executive officer, who noted that the deal had taken 15 months to complete. "By a wide margin, it's the biggest deal in the company's history," he added.

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...

[9miles]

ONT dropped from 35 to .08 and faced delisting from the AMEX during the same period EDIG and the entire stock market, for that matter, was in a tail spin.

You think those who bought it last year for less than one thin dime are smiling now and could care less what negatives were being posted regarding operations, losses or going concern statements ?

Truth is that companies emerge from bad times after readjusting their business models. ONT has its proprietary technology and the POTENTIAL for growth and I doubt investors today are concerned with last year's losses or whether the outstanding share count is 40, 65 or 150 million as one or two deals make this a turn around candidate.

The market looks hungry to find the next break out candidate that beats the odds.

"The AMEX staff notified the Company in June 2002 that the Company has fallen below Section 1003(a)(i) of the AMEX Company Guide for having shareholders' equity of less than $2,000,000 and losses from continuing operations and/or net losses in two out of the three most recent fiscal years. The Company was afforded the opportunity to submit a plan of compliance to the AMEX and presented its plan to the AMEX in May 2003."