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Message: Re: Institutional ownership

Jan 20, 2007 10:41AM

Apparently no update regarding the Fusion Capital deal on the data from my previous post. Too soon to be reflected ?

And while it is noted that Fusion has the obvious right to sell its position, this excerpt is also noted:

i) No Prior Short Selling. The Buyer represents and warrants to the
Company that at no time prior to the date of this Agreement has any of the
Buyer, its agents, representatives or affiliates engaged in or effected, in any
manner whatsoever, directly or indirectly, any (i) "short sale"
(as such term is
defined in Section 242.200 of Regulation SHO of the Securities Exchange Act of
1934, as amended (the "1934 Act")) of the Common Stock or (ii) hedging
transaction, which establishes a net short position with respect to the Common
Stock.

**********

(d) Exhibits.

10.1 Common Stock Purchase Agreement, dated as of January 2, 2007, by and
between e.Digital Corporation and Fusion Capital Fund II, LLC.

10.2 Registration Rights Agreement, dated as of January 2, 2007, by and between
e.Digital corporation and Fusion Capital Fund II, LLC.

99.1 Press Release dated January 8, 2007.

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