By Sheri Kasprzak
New York, Jan. 8 - e.Digital Corp. received an $8.5 million common stock purchase agreement with Fusion Capital Fund II, LLC.
Under the agreement, Fusion may buy shares over the next 25 months at a price to be determined based upon the then-current market price. The investor may buy shares in amounts between $80,000 and $1 million. Fusion may not buy shares any time the company's stock trades below $0.08.
So far, Fusion bought $250,000 in stock at $0.12 each.
Fusion also received 3.5 million shares as a commitment for the agreement.
Proceeds from the agreement will be used for the expansion of the company's eVU mobile entertainment system business, the acceleration of licensing efforts for its flash memory-related patent portfolio and for working capital.
In other news, e.Digital converted all of its outstanding 12% subordinated convertible promissory notes due Dec. 31, 2006. The company issued a total of 8.75 million shares in the conversion.
San Diego-based e.Digital develops digital video technology and products, including flash memory in portable devices.
Issuer: | e.Digital Corp.
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Issue: | Stock purchase agreement
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Amount: | $8.5 million
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Tenor: | 25 months
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Price: | To be determined based upon market conditions
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Warrants: | No
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Investor: | Fusion Capital Fund II, LLC
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Settlement date: | Jan. 2
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Stock symbol: | OTCBB: EDIG
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Stock price: | $0.17 at close Jan. 2
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