ERHC Energy Inc (ERHE)

[Krombacher]

He got his CD and immediately converted not at a 40% discount and more, but for a higher conversion price than $.0005. In fact, maybe even twice that.

Just do the math with the info in the 10Q. You know he lent $250k, you know how much the O/S went up. Using only those numbers gives you a lower bound of $.0005. Now throw in the other CD lenders and possibly a mysterious lender in Various...and the lower bound goes up.

Hence, buying shares for cheaper than what he can in the CDs makes a TON of sense.

That's why he's probably buying on the open market.

As to why he doesn't do the 40% discount deal? Well, because he might exceed the 3 billion mark...further diluting his other shares and ownership.

Also, like LMLT said, he probably values his company's assets more than whatever 40% of .0005 would get him...a fraction of a penny.

Krombacher