They won't release any details on price or specs, but I did get confirmation that the ereader would launch at Romanticon 2011, which will be held in Akron, Ohio, at the end if September. It's going to be a limited edition release, and it will come stocked with a selection of titles published by Ellora's Cave.
At this point, I'm not even sure it will look like the 7" ebook reader pictured at right. We'll have to wait for the convention to find out more.
Ellora's Cave via @SmartBitches