RE: For your viewing and comments// SGE
posted on
Jul 20, 2005 11:18AM
As you may have noted (how could you miss it?!), I`m of the opinion that they seek these shares for a reason beyond simply keeping the doors open. I`m fairly convinced that ``something`` is in the works, simply due to the size of the request. I mean, they could have just gone for 50M new shares, which at today`s PPS would yield some $6M, or enough to keep the lights on (at current burn rate) for two whole years (a decade in techno world), with no other income.
So what`s it all about? We`ve speculated....:
Offering an equity share to an existing or new business partner.
To obtain funding (either directly or through financing with more beneficial terms) to enable production of something.
To demonstrate that EDIG will remain a going concern for an extended period, enabling a major deal with a reluctant customer.
Other?
Combinations of the above?
But this takes me to my point. I think things are happening based on company and current BOD efforts. These things gave rise to this need for further share authorization (twelve million bucks worth!).
I may be very naive, but I think that the status quo is very motivated in finding success for the company and its shareholders. I`m not sure adding a (unintentionally) ``disruptive force`` to the BOD will improve our stead.
But I KNOW nuttin`!
SGE