It was a partial debt conversion for the loan given by Ash and Oak. Now these two pretty much own > 80% of Egain. Oak converted more than 100 million last time in 2004. They must be thinking there is some value still left in Egain.
At the very least monly interest expenses will be down. Ash hasn't taken any salary for the past 6 years. So, that helps.
Now, with 22 million shares and $32 million in annual revenue and less debt, what would be a fair value for Egain ?