Replies to post #54918 on e.Digital Corporation (fka EDIG)

[chipperca]

The investors that purchased shares on the open market at the same time that the short sellers were selling. The provisions of the convertible share agreement allowed this. It is the unfortunate side of issuing convertible shares.

[sdr]

sricket - example - a 19 million share offering - the greenshoe is an additional 500,000 shares, the size of the underwriters short position - the underwriter cover their 500,000 share short position by buying stock from the issuing companies greenshoe - those shares become part of the new float and are owned by the public