e.Digital Corp. (OTC Pink: EDIG) is engaged in the development and marketing of intellectual properties, which focus on security and technology. Shares of the technology company have collapsed 92.53%, through early trading on Friday, July 7, 2017. Over the past month, e.Digital Corp. saw average daily volume of 311,995 shares. However, volume of 33.46 million shares or dollar volume of $55,209, has already exchanged hands on the day.
Shares of e.Digital Corp. are diving today, after the company filed an 8-K filing. The filing details that the company has decided to cease operations and file for Chapter 7 bankruptcy protection. In addition, four directors announced their resignation from the company. Here is part of the 8-K detailing of the bankruptcy:
e.Digital Corp. 8-K Filing:
Item 1.03 Bankruptcy or Receivership
On July 6, 2017, after considering all strategic alternatives, e.Digital Corp., a Delaware Corporation (“the Company”), and its wholly-owned California subsidiary by the same name, ceased operations and filed a voluntary petition for relief under provisions of Chapter 7 of Title 11 of the United States Code, 11 U.S.C. §101 et seq. in the United States Bankruptcy Court for the District of Delaware and the State of California (“the Bankruptcy”). A Chapter 7 trustee will be appointed by the Bankruptcy Court and will assume control. The assets of the Company will be liquidated and claims paid in accordance with applicable laws.
Item 5.02 Departure of Directors or Certain Officers.
In connection with the Company’s voluntary assignment in bankruptcy, a trustee will assume control over the assets and liabilities of the Company, effectively eliminating the authority and powers of the Board of Directors of the Company and its executive officers to act on behalf of the Company. Accordingly, on July 6, 2017, Allen Cocumelli, Russell H. Packer, Donald S. Springer and Renee Warden resigned from their positions as directors of the Company. The resignations are not the result of any disagreement with the Company regarding the Company’s operations, policies, practices, but are because of the voluntary assignment in bankruptcy. The executive officers of the Company ceased to be officers and employees of the Company, effective July 6, 2017.
Here is the link to the full 8-K filing: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12165606