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I didn't say the convertible debt had expiration dates, I said they had maturity dates, although I can see why you might be confused.
The maturity dates are known from the financials and have long since matured for several years now. There is no new convertible debt since the last financials because they would have to do a reverse split first in order to issue new debt and they haven't done that.
You're also wrong about the "annual" shareholders meeting. A careful reading of the bylaws and articles stated that an "annual" Shareholders meeting is only held if it is called, but there's no obligatory language requiring the company to call one. So the "annual" Shareholders meeting is not really annual but only initiated if called.
So all is in order. Besides, you can't call a shareholders meeting under a gag order anyway.
Krombacher
I never said the covid PPP was an ongoing revenue stream, but they had to demonstrate revenue for two years running in order to get PPP funds two years in a row. To get the amount they got, I estimate that they had to prove they had annual revenues of $1.6 million for each of the two years. I also speculate that if they made $1.6 m in each of the two years to qualify for the PPP covid funds, then it's very likely they've been making this revenue in non covid years as well.
You don't seem to know how to read your own quote.
The quote doesn't say "if ERHC actually finds a partner, working capital will be needed"
It says, "Erhc's ability to exploit existing and prospective opportunities will depend on its ability to raise the requisite financing to meet its working capital needs" which it can only do by finding a partner.
I don't lie, you just don't understand what constitutes a lie because you yourself lie so much. For example, you claimed Offor is not a billionaire and you claimed there would be a second reverse split. None of this was true.
Krombacher
SSC,
you said, "erhc doesn't need funding because they can't find anyone"
How does that work? The opposite is true, if ERHC doesn't find anyone, then they would need funding because finding someone brings them funding.
You think I've been changing my story? Really? I think I've been fairly consistent and I've posted all the things you've been wrong about including Offor not being a billionaire, there being another reverse split, and the list is long.
Be that as it may, this is not a contest about who can be consistent or who can print shorted shares to keep the price down...
... this will ultimately be about the fundamental value of ERHC's blocks.
And when it ends, we will know who wins. But it hasn't ended just yet. I know you desperately want to call it, but you can't because it ain't over. But soon it will be. And most longs will wait for it. That's why shorts can't cover as much as they're desperate to do so. If the outcome is as I believe, shorts will suffer, as they deserve to. It is what it is.
Shorts had ample warnings since Day One. But instead of believing in what I had to say, they chose to call me a liar falsely.
They will pay dearly for that mistake.
Krombacher
You said that if the need for additional capital arises, then a reverse split and convertible debt is back into play.
But we haven't had one in nearly a decade. So by inference, you must be saying that ERHC does not have a need for additional capital all these years... probably because their PPP application implies they had $1.6 million in revenue annually, since they got the PPP funds twice and to get them they must show revenue. I'm guessing the Starcrest merger went through and that's where the revenue comes from. Starcrest is also partly owned by Offor. And they had an MOA with starcrest just prior to the gag order going into effect.
If Offor owns the vast majority of voting shares then why would he bother taking the company private? To save on SEC filing fees? They already save that thanks to the gag order.
I guess I'm not following your logic as to why Offor would bother going private. What would be the advantage of that? And management likely owns significant shares. If Offor could buy shares behind a gag order, then so too can management.
Krombacher
Let's say I hypothetically agree with you for the sake of argument (although I don't agree about raising the shares authorized because that requires a change in the articles and bylaws, and a change there is rare. Usually they would just do a reverse split to lower the shares outstanding and keep it below the shares authorized so they can then print shares if they wanted to dilute shares with convertible debt)...
... but let's say Offor could easily issue preferred shares and the like. Why would he do that when he could just issue a simple dividend. If he owns the vast majority of voting shares, then he's not really sharing the total dividend payout much.... the vast majority of the dividend payout by ERHC would go to him anyway.
Add to this fact that a dividend payout is more TAX EFFICIENT than any other form of payout, why wouldn't Offor choose the most logical path of least resistance and just give himself a dividend rather than embark on all manner of nonsense, even if that nonsense was legal?
What you're failing to grasp is that neither Erhc nor Offor has to make any dividend payment to shareholders of shorted shares. Why would Offor care? That's not his problem.
The shorts have to deliver the dividend payment to the owners of the non voting shorted shares not Offor and not ERHC. That's the short seller's problem not Offor's.
If Offor is getting nearly all of the dividend issued because he owns nearly all of the voting shares, then that's going to be far more TAX EFFICIENT than trying to pay himself a bonus or preferred dividend, etc.
He or his financial advisors would be idiots to ignore that.
And to those who think there's still convertible debt on the balance sheet, you are forgetting that convertible debt, if not converted into shares, has a maturity date. Once the debt is mature it must either be paid or it is defaulted on. After a default, the parties would have to try to collect via courts, and that hasn't happened either. After a while, the debt is simply written off by the debt collector, if it's deemed uncollectible. By now, that convertible debt has long been removed from the books and no new convertible debt can be issued without a reverse split, and no reverse split has occurred, so no new convertible debt has been issued. The debt has been vaporized.
Krombacher
I'm not pretending to miss the point.
It's an idiotic point.
If Offor has controlling interest as I believe, of course, he could do lots of things.
But from an accounting perspective, my point was that ERHC could not issue any convertible debt when the shares outstanding almost equals the shares authorized UNLESS they do a reverse split.
In almost a decade since the last reverse split, the company has not done one, despite that YOU falsely predicted that they would.
Why would they? Especially if Offor already took advantage of the cheap prices after the last reverse split to buy shares behind a gag order? (Which is an assumption on my part) No need to do another one. And so long as he was following a judge's order in the form of a gag, then it's legal because the gag takes primacy over the SEC, as we know by the tenth amendment of the U.S. Constitution (but I am not a lawyer)
Or how about you answer THIS question: why on earth would Offor want another reverse split to buy convertible debt if he already owns the company?
Clearly, he wouldn't and that's a way to deduce that he already does own all the shares he wants to own.. the fact that they didn't do another reverse split tells you that Offor doesn't want one or need one.
More in line with what Offor would want as a shareholder is a dividend that pays him while short sellers pay a dividend to our shorted shares ownership.
And you can't hide a reverse split. Everyone would see their share count change if they attempted one. So don't give me some nonsense about them secretly doing one.
And they can't secretly issue convertible debt when the shares outstanding equals the shares authorized, either.
Krombacher
Dude that's the most circular logic yet.
So let's get this straight.
Offor wants control so he
Step 1: owns a controlling interest in the company
So that step 2: he can force a reverse split so the company can issue convertible debt
So that step 3: he can use the convertible debt to own a controlling interest in the company?!?!?
Why would he do steps 2 and 3, if step 1 already gets him control of the company???
Wouldn't he be better off using his control to issue himself a dividend when the company is able?
Then, shorts would pay the same dividend on all the shorted shares as well.
Offor would kill two birds with one stone. The company would pay his dividend AND the shorts would pay our dividend.
Krombacher
They can't issue more convertible notes because the shares outstanding is practically equal to the shares authorized.
They would have to do another reverse split. Since they never did, more shares can't be issued through convertible debt.
If Offor wanted control of ERHC, he would simply buy more shares, which I believe he did while gagged.
Krombacher
The international caveat emptor tells us that block 4 is legally in ERHC's hands.
Stp tells us that Shell was invited to enter into a PSC.
Logic tells us that Shell must therefore remunerate Erhc for the block and bid more than Total.
The 400 page document says Total was assigned the block.
Lots of facts.
Krombacher
4 parties in the potential agreement
1) Sao tome
2) Shell
3) Total
4) ERHC
and possibly 5) Kosmos.
That's a lot of cats to herd into an agreement. So it takes time.
But should be "any day now"
I measure days in "African days" ... they take longer than Canadian days due to their proximity to the equator
December 31 came and went. No one took a tax write off despite that we had 5 zeros and the write off would've been substantial. Volume was zero during the tax loss period in December.
I wonder why that is?
Because when investors bought all those shares from short sellers they knew short sellers would be buying them back for dollars later.
Milk the shorts!
Krombacher
Hahaha. The volume with the exception of one 500k share day has been ZERO for weeks. Who do you think is buying it?
Shorts shouldn't be worried about new purchases.
They should be worried about paying a penny dividend on shorted shares or delivering Total shares to shorted shareholders. And, of course, they should be worried about the short squeeze not by every day buyers but other short sellers buying to escape what's coming. Why aren't existing shareholders selling, as the zero volume proves is the case? That's the bigger question still.
But that was a very funny post.
Krombacher
I think it was this one:
https://buzznigeria.com/sir-emeka-offor-biography-and-net-worth/
Or one like it.
I recall posting a credible link in the last couple years, but I let my ihub subscription expire so I cannot search for it. I also remember rubbing ssc's figurative nose in that link at the time.
But he is a billionaire.
Krombacher
Bullshit.
You claimed Offor wasn't a billionaire in u.s. dollars.
Total lie and defamation at that.
Krombacher
Everything in your post is a lie.
There are consequences to lying.
You will be taught that soon enough.
Krombacher
You've called me a liar and other names every day for years.
If you think this is about 2 to 3 cents, then you're in for an awakening.
I will work very hard to thwart the shorts.
They will soon see what I'm made out of.
This is personal and 70 other shareholders get it.
It's not about the money, although this will make me a billionaire, it's really about short sellers who shouldn't be shorting according to U.S. law but are using Canadian loopholes and their predatory tactics on the vulnerable hopeful investor.
There will be justice. Justice that will reverberate across the entire penny stock universe.
That is what this is about.
I don't actually care about the money, if I did I might be tempted to sell for pennies. But I'm not so tempted, because I serve a higher power.
Krombacher
My thinking on it is:
Shell will get block 4
Total will get the JDZ blocks.
It'll be a one two punch.
Shell will announce... and some longs will sell in the pennies on that announcement.
But the real money is the JDZ that will follow the Shell announcement with Total doing the buying.
But, having said that, either announcement will likely turn into a short squeeze at T+3 after the initial pop.
A dividend or buy out would really clinch that short squeeze though.
So I encourage longs to be patient with the initial pop.
This isn't like the short squeezes attempted in the past with no tangible fundamentals underneath, which would encourage some longs to undercut the market by selling for pennies instead of dollars.
If this happens, you have the backdrop of a Shell deal and probably a Total deal to follow.
So my thinking is don't rush for the exits for the pennies the shorts will offer. I estimate that for many shorts, 2 or 3 pennies are either break even or a mild loss. Although for some shorts, even half a penny might send them into a margin call.
We can take them and their brokers for much more if we play our cards right.
I'm not greedy... but do feel that after all these years, we deserve to take the shorts out royally and not simply because we're exasperated from a wait.
Krombacher
You have to look at both Offor and Chrome holdings since Chrome is 100% owned by Offor (or some super majority percentage like that)...
... filings show something like close to a billion shares (some will argue that's not split adjusted, but I disagree).
But it doesn't matter because as such a large shareholder I'm sure Offor is under the same gag order and couldn't disclose any additional shares he might have picked up.
But this has been discussed to death including examining very high volume days and concluding, I guess, that it's not him.
Nevertheless, it is my opinion that he owns a very large percentage if not nearly all the shares.
No proof though.
BTW, I don't expect another shareholder like Offor to "give" anything to me or any other shareholder. That's silly.
But I do expect him to get a dividend or buy out like all other shareholders, including shareholders holding shorted shares.
The people who are going to "give" dividends or Total Shares to shorted shareholders are none other than the shorts and their brokers.
Of course, shorts don't like this so they will rush for the exits in a short squeeze worth $8 or more a share.
Longs just have to wait T+3 days after the pop from the announcement.
Krombacher
I'm not commenting any further on this topic.
Krombacher
First of all,
If Offor owns most of the voting shares, and he owns them in a margin account, then it doesn't make a difference if other shareholders move their shorted shares from margin to cash because shorts wouldn't be borrowing the shares from us but from Offor. So it would have to be Offor who has to move his shares to a cash account
But that could be a wrong assumption, because the shares could've simply been printed and the shorting is naked not borrowed. In that case only a buy out forcing shorts to deliver TTE shares or a dividend forcing shorts to pay a penny to all the shorted shares will change a situation wherever shorts can print infinite shares to meet demand.
Second, we have a group of shareholders who want to know whether their shares are voting shares. That's their right. We are taking steps to learn that information. We certainly want to vote for a dividend for the reasons above as soon as Erhc has the means to issue one.
Krombacher
Alternatively,
We can see if our shares are voting shares. If they're not they're shorted shares.
We should have that answer before the squeeze happens, giving us that much more empowerment when the squeeze happens.
Krombacher
We will wait the T+3 and get $8. And probably higher.
What's 4 days?
I'm not in this for a nickel.
Krombacher
Well, if you knew it in 2010, then you were wiser than me in that era on that topic. You could've given me fair warning.
At least, I'm a good sport and I warned all the shorts to cover with Day One warnings.
I guess not everyone is as kind as me.
Too bad the shorts didn't listen and will get caught up in the short squeeze.
Krombacher
I also stated i'm not a lawyer, as it is clearly written.
We didn't have AI back in 2010.
Given that AI says it doesn't work that way, I'm changing my stance on this and asking anyone contemplating it to please consult with their attorney first.
Laws may have changed or new regulations introduced regarding stock message boards.
Back in 2010, message boards were still relatively new.
So, I would recommend you get a lawyer if you are contemplating this.
Krombacher
As I have stated many times before, I'm not a lawyer and therefore don't give legal advice.
I asked Meta AI, and it doesn't work that way.
Although Meta AI is not a lawyer either.
You should consult a lawyer to get a definitive answer.
Krombacher
I requested them NOT to give me any information if they deem it to be confidential or insider information and only give me information if it's public information or part of Sao Tome's version of a freedom of information act request. I also requested that Sao Tome be timely about putting any information for public consumption promptly on their website, because there are many who have an interest and would appreciate the transparency.
They agreed.
I have received no information so far of any type.
Krombacher
20 years is par for the course. Most billionaires except for someone like Zuckerberg take at least that long.
Our day will come. I'm very certain of it.
Krombacher
Becoming a millionaire or billionaire doesn't happen over night, lots of work is needed.
That said, the work required for you to search your contacts for a Canadian "helper" seems like minimal effort to become an ERHC millionaire or billionaire. But to expend that effort means you really believe in this investment to be motivated.
The shares can be had for a bargain, in my opinion. Are you enterprising enough to make it happen?
Krombacher
Why don't you tell us how to buy on the expert market?
Go on. Do it. I dare you.
Are you scared we will buy a bunch of shares if you tell us how?
I bet you are.
Let's watch you side step this question as predicted
Krombacher
The ones who will succeed in this investment:
1) recognize the intrinsic value of oil in the block
2) have the discipline and consistency to stick with the investment to fruition and can weather the required patience involved.
3) can see through your bullshit and recognize who the shorts are and not allow themselves to be deceived by them
4) truly understand the difference between value and share price and that share price eventually does converge to value
Those who get it, will become very prosperous with this investment, in my opinion.
In the meantime, keep dodging the question as to how someone can buy shares on the expert market... the more you dodge, the clearer it becomes that you're a short seller.
Krombacher
There are many who only wish they could own 400 million shares... and shorts especially so because they would love to cover.
... block 4 source oil commands and drives the entire process currently underway with ERHC, Shell, Total and STP and maybe even Kosmos. They want the oil, so they're going to ultimately cooperate.
But I'm afraid that anyone who wants shares is going to have to get non American citizenship or find a Canadian friend, if they want precious shares in ERHC worth dollars but selling for a fraction of a penny by short sellers who have no choice but to do so in an unsustainable strategy.
Krombacher
The SEC officially dismissed the case for stock revocation.
I'm surprised you didn't research that before heavily shorting the stock at such low prices that not even other shorts would short at.
If I were to rank all the shorts from king to queen all the way down to expendable pawn... guess which rank you would take?
On that chess board, I think you would be the pawn. Because you got p'owned.
Warren Buffett: "at the poker table, if you don't know who the patsy is then it's probably you"
Krombacher
I know how frustrating it must be for you to be in this investment for so long unable to cover a short position which has only grown.
Don't worry, you'll be put out of your misery any day now.
Krombacher
Clicking only on one link is not "seeing"
Click the second link under the EEZ.
And for hard proof, click the 3rd link under EEZ
You're going to lose all your money in this short position you have precisely because you fail to pay attention. That post is years old, and you could've gotten out way back then.
If only you did your homework back then, eh?
Krombacher
He's not wrong... lots of alleged bribing info
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=163726869
Krombacher
That's a fair point. And ERHC did say the words "with finality".
On the other hand, what is Total's opinion on this? Could the question of Kosmos have prevented Total from moving forward on its done deal in the 400 page document all these years? If so, that would explain why neither Total nor ERHC wanted to pay a Sao Tomean tax until the issue was truly resolved "with finality".
So Sao Tome, upset about the tax, began a bidding process which failed due to the international caveat emptor.
But then, Sao Tome came to the realization that the problem requires a "heavy hitter" like Shell ... and so we will have resolution finally with finality and to the benefit of all ERHC shareholders but to the chagrin of all ERHC short sellers.
Krombacher
I think the bidding on Block 4, with only two bidders, one who dropped out and the other who didn't have the financial resources, set the stage for Sao Tome to come to grips with the problem that block 4 is contested and the international caveat emptor is the most likely reason the bidding on the block didn't attract more attention.
By inviting Shell, STP changed the game, because if Shell accepted the invite, as appears to be the case, then only Shell would know the extent to which block 4, with source oil, is valuable.
If Shell really wants the block, it can offer substantial monetary resources to the Total/ERHC combo allowing them to release the block to Shell. Furthermore, Shell can also placate Kosmos with some monetary resources as well to get Kosmos to release the block also.
This was needed so that it could pave the way for Total to acquire ERHC in a buy out for its JDZ assets and the cash in its coffers from Shell.
It's like I said:
Step 1 - Shell pays ERHC cash for block 4 (also paying Kosmos and Total)
Step 2 - with several pennies a share in its coffers from Shell for block 4, ERHC might choose to pay a dividend as a cost effective means to draw in more investors versus an expensive road show or conference or getting off caveat emptor
Step 3 - Total does a buy out of ERHC and we get TTE shares. TOTAL does this to gain the JDZ assets and pick up the cash from Shell.
It's all nice and neat.
Kudos to STP for brokering this amazing private public partnership with Shell while respecting ERHC as the pioneer who got this all to happen in the first place. Bravo!
Krombacher
Total won the Arbitration case too. Doesn't that also give Total the right to enforce its contract just like Kosmos?
Maybe that's the reason Kosmos didn't enforce it, because it realized it would now have to resolve the issue with Total, who has infinite resources to continue fighting a legal battle which Kosmos clearly doesn't want to fight as evidenced from their withdrawal in Harris County.
I don't think the STP "intelligence" was wrong. I think there were two bidders, one dropped out and the other was not financially capable. Shell came in after the fact and it may be possible that they didn't even bid on the block, but were simply invited to participate in a PSC. But I'm not sure about that.
I think STP brought in Shell to clean up the mess. Total is a "royal" in the oil patch. So you need another "royal" like Shell to bring this to resolution. I'm confident ERHC will get its piece as a pioneer in the field. It will be respected.
Krombacher
Well... Kosmos won the arbitration, but ... you also know that they pulled out of Harris county and that Total won the case on block 4 in arbitration as well. You also know that Kosmos IR said they're out of block 4.
But, given all of that...
Let's look at the facts....
According to you, you think Kosmos still thinks they have a claim on block 4, despite the 8k that pretty much said that ERHC kept block 4 with finality and despite the international caveat emptor on the block by ERHC. So, therefore, if we are honest here (and I have no reason to think that you would not be), we must also concede and admit that ERHC and Total also think they have a claim on block 4.
So it could be that there's an impasse with no conclusive anything regarding block 4 and who has the claim: ERHC and Total OR Kosmos.
So it could be that Sao Tome put the block up for bid for this reason, because it got tired of waiting for the impasse to be resolved (in addition to any tax issues). We know that Kosmos DID NOT bid on block 4 at all.
But, clearly, Shell would not bid on the block and win it if the block were contentious....UNLESS Shell spoke with Kosmos and ERHC and Total and is working to resolve the issue.
Clearly, Shell knows the value of block 4 and the source oil after looking at block 6 and Jaca 1, better than anyone else would.
So for Shell to step into the "quagmire" of ERHC/Total/Kosmos and potentially upset its partner Kosmos in the other blocks must mean that Shell thinks block 4 is well worth the hassle of untangling the quagmire....and clearly they're in process of doing exactly that.
So long as ERHC gets more than a few pennies a share and can issue a penny dividend and later get the JDZ assets sold to Total, I could be very happy when we add on top of that the short squeeze effect taking us into the dollars. And I think they will because clearly Kosmos values Block 4 for 17 cents and Oranto and xrimlinger value the adjacent block for 20 cents a share. And that's before Jaca-1, source oil, high oil prices, and Shell's interest in the block, which to Shell is clearly worth the hassle of dealing with all of this. Shell made its interest known AFTER ERHC"s international caveat emptor was issued. Hence, Shell is well aware of the quagmire it must untangle.
Whatever you'd like to smoke is fine with me...but the logic on this is very strong, and I challenge you poke holes or provide an alternative scenario.
Krombacher