Kaloyan Gadzhev

e.Digital Corporation (OTC:EDIG) Gains on License and Settlement Agreement with HTC

by Kaloyan Gadzhev September 1, 2011
3EDIG_chart.pngYesterday e.Digital Corporation (OTC:EDIG, EDIG message board) closed at $0.0469, up 26.76%. 1.2 million shares changed hands in the session, almost all of which after the company announced a license and settlement agreement with HTC America, Inc.

The detailed terms of the agreement remain confidential, but EDIG said HTC had obtained a license and release on the company's Flash-RTM patent portfolio and had paid a one-time licensing fee to EDIG.

Traders welcomed the news and this was to be expected, keeping in mind that the positive outcome for the quarter ended Jun. 30 was mostly due to revenue from licensing. At that time, EDIG reported having enough cash to cover its liabilities and some working capital.

Nevertheless, it may turn out EDIG will need a lot more positive developments to make up for the crash from the end of June.

On June 29 EDIG lost more than half of its value after the United States District Court for the District of Colorado issued an Opinion and Order Regarding Claim Construction, construing a claim term in one of EDIG's Flash-R patents more narrowly than proposed by the company.

EDIG_logo.jpgIt is not yet clear when and if EDIG will recover, but agreements like this one could help.

Comments 0

Type the characters that you see in the box (5 characters).