ERHC Energy Inc (ERHE)

[Krombacher]

Does Chrome *have to* file a Form 4 or not?

Well, let's think about this....

..I suppose if an individual didn't file a Form 4, when they are supposed to, then they can face fines and/or a jail sentence...as they get prosecuted by the SEC.

...but Chrome is not an individual human being...it is an entity....

...so if an entity fails to file a Form 4, then I suppose they would face fines and lose the benefits of being a publicly traded company on a U.S. exchange...

...except Chrome is neither publicly traded nor is it a U.S. company...

...hence, one may conclude that there is little or no consequence for Chrome to file a Form 4.

It could very well be that in addition to acquiring shares through its CD of $250k, Chrome may be buying up shares on the open market.

We know from deduction that the minimum Chrome paid for its shares in ERHC through the CD had to have been at least $.0005 per share. We know this because we know how much the O/S went up in the same quarter that Chrome converted. And $.0005 per share assumes that ALL of the new O/S was from Chrome, and we know that is not true.

Hence, Chrome paid north of $.0005. That is to say that $.0005 is the absolute minimum.

If Offor values his company for more than $.0005 when buying with CD's...then he must also value it for at least $.0005 if he is buying on the open market.

That might explain the reluctance of the share price to dip too far below $.0005, except for very short periods.

Is $.0005 the rock bottom floor? Maybe. It is if you consider the O/S now and compare it to the Oando investment plus cash.

Anyway you slice or dice it, the stock is undervalued.

Krombacher