Re: A lot of posters here said they were confident in EDIG as long as DM remained
posted on
Sep 17, 2012 10:35AM
Good questions/thoughts, but seriously doubt we will ever get any answers/details as to why the switch and the new terms, but....
DM's deal was 60% us, 40% them, plus misc expenses, but no money up front, and 50/50 plus expenses if it went to trial.
DM also held a lein on the 5 patents as "collarteral" and in the event EDIG is acquired, DM gets 15% of the "value of the patents." This reduces our take per share if acquired.
The Handal deal is 33% plus expenses, $30K/month up front creditable against future contingency recoveries. 40% ditto if it goes to trial.
The up front money stings, but over all IMO it's a slightly better arrangement.
I don't see anything about a patent lein either.
As most did, I thought DM would go the distance. The 19 licence agreements although not mega bucks, got us to where we are now, cash on hand to fund operations and go to phase 2 of the IP litigation deal.
Obviously Handal has done their homework to take us on.
I see this as good news for the future.