I see your point but was viewing it from a shareholder perspective appreciating a $.95 conversion price. Equity is equity is equity.
Having said that, I don't think they had a whole lot of choice as one of the following had to exist: (1)auditors were saying going concern opinion without a conversion or extension. (2)customer's were balking at eGain's balance sheet.
Ash and the Board have always dealt more than generously with the minority shareholders and this may just be another example rather than a "fair" business deal.