By Sheri Kasprzak
New York, Feb. 27 - e.digital Corp. said it settled a $1.5 million private placement.
The company sold 18.75 million shares at $0.08 apiece to 27 investors.
The price per share was 85% of the average closing bid price for the 10 trading days before Feb. 22.
The investors also received series A warrants for 4,687,500 shares, exercisable at $0.10 each through Feb. 28, 2009 and series B warrants for 4,687,500 shares, exercisable at $0.09 each until six months after the registration statement is effective.
Proceeds will be used for working capital.
The offering triggered anti-dilution provisions on some of the company's outstanding securities. The strike price for 4.07 million shares was reduced to $0.08 from $0.50. The exercise price on 2,112,500 shares was cut to $0.08 from $0.19 and the conversion price on $1.5 million of 12% subordinated promissory notes was reduced to $0.08 from $0.19. Also, the conversion for the company's series D and series EE convertible preferreds was dropped $0.08 from $0.19.
Based in San Diego, e.digital develops secured technology platforms for digital content.
| Issuer: | e.digital Corp.
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| Issue: | Stock
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| Amount: | $1.5 million
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| Shares: | 18.75 million
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| Price: | $0.08
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| Warrants: | Series A warrants for 4,687,500 shares, series B warrants for 4,687,500 shares
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| Warrant expiration: | Feb. 28, 2009 for series A, six months after registration statement is effective for series B
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| Warrant strike price: | $0.10 for series A, $0.09 for series B
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| Settlement date: | Feb. 24
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| Stock symbol: | OTCBB: EDIG
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| Stock price: | $0.132 at close Feb. 24
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