No, I believe the rest of the post indicated it as a negative, at least as far as PPS is concerned for investors, because it means there will be an additional S-3 registration filed to cover the shares. That will have an adverse pull on the pps thru dilution.
It IS bad news. Perhaps I was not clear. The dilutive S-3 is still required and will come at some unknown future date.
It is also bad news that it has not yet been filed because if the conversion shares were registered, the company would have the option to require conversion if the share price stays at .60 or higher for 10 consecutive trading days. Once the shares are converted, the company no longer has to pay the 12% dividends on the Series D shares, which would greatly help the bottom line.
Remember that e.Digital is not paying the interest due on its outstanding 15% loan and is operating under a forebearance agreement (foreclosure delay). (See #msg-1330843). If they could eliminate the Series D dividends, perhaps they could pay the interest due on the loan.
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