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I believe the SEC has 10 days from the filing to approve. So I am guessing there will be no real buying or selling until close to August 28th. Obviously management can't release any sort of plan while the SEC is still reviewing.
just an fyi - those management options don't expire until 2021.
it's amazing how sarcasm goes unnoticed on the interwebs... i LOL'd just4profit. thanks for the morning laugh
The 14a already lists the proposals to be voted on. None of them mention a buyout. Special sh meetings regarding takeovers are announced AFTER a bid has been made public.
troy - devils advocate... first why would they need more shares if they could monetize current assets? second...they're not willing to part with the JDZ because they have nothing to lose.
again...i won't judge until i get the details. there has to be something more to this than just tripling the share count for nothing tangible. as you said... stating "the future never looked brighter" and then issuing a boatload of shares to stay afloat will bring out all kinds of ambulance chasers.
it was posted to EDGAR just before 2pm so it was out there for anyone to see.
i agree - dilution is generally not looked at favorably but I will wait to see what they have to say on aug 28th before judging.
oh no doubt bmu... dilution generally sucks. Unless they can justify it with proven assets. So far we have none of that. I am not happy about this but I will wait to see what they say on aug 28th. The market is starting to digest it and the bid is weakening (not surprising as this will act as an overhang on the stock until there is something more tangible to support such a drastic move).
well technically it's only 2.05bn additional and it doesn't necessarily mean all will be used...but... dilution is still dilution. I hope they go the way of a rights offering or something other than just diluting the crap out of all us.
3 billion according to the filing. So much for the secret partner/funding many were speculating about.
a lot of interesting info in this SEC filing. some good some bad. I find the part about a rights offering interesting. could be a good way to go for current shareholders:
One form of financing the Company may entertain would involve looking to the Company’s existing shareholders to fund such capital demands through a distribution, or “Rights Offering.” In a Rights Offering, each of the Company’s shareholders would receive rights to purchase the Company’s Common Stock or other securities, on a pro rata basis and upon the same terms and conditions. Such rights would be exercisable at a fixed price (typically at a discount to the recent weighted average trading price of the Company’s Common Stock) over a fixed period of time. Because each shareholder would be given the opportunity to purchase from the Company its pro rata share of Common Stock, a Rights Offering would give all of the Company’s shareholders the ability, by purchasing shares, to avoid the dilutive effect typically associated with raising capital through the placement of equity securities with third-parties. A Rights Offering could also be structured to increase the likelihood of the offering being fully subscribed, including obtaining commitments from certain shareholders to exercise their respective rights in full under any Rights Offering and negotiating standby or backstop arrangements with investment banks, affiliated parties or other third parties pursuant to which such parties agree to subscribe for any shares or rights that are not exercised in the Rights Offering. In addition, the Company may enter into other arrangements designed to insure that the necessary capital is raised by the Company, including granting over-subscription privileges for shareholders fully exercising their respective rights to subscribe for additional shares under the Rights Offering, subject to pro rata distribution based upon allotted shares.
new 14A is out (special shareholders meeting)... looks like dilution is the answer to our funding:
? 3:00 P.M. (Houston local time), on September 25, 2012
PLACE ? The Renaissance Houston Hotel
6 Greenway Plaza East
Houston, Texas 77046
PURPOSES ? To amend our Restated Articles of Incorporation to increase the number of shares of our common stock that we are presently authorized to issue from 950,000,000 to 3,000,000,000 (“Proposal No. 1”);
? To amend our Restated Articles of Incorporation to authorize our Board of Directors to create and issue from existing authorized shares of preferred stock one or more classes or series of preferred stock, with such privileges, limitations and related rights as our Board of Directors may determine from time to time in the future (“Proposal No. 2”); and
? To transact any other business within the purpose described in this notice that properly comes before the special meeting or any adjournment of the special meeting.
arnim - not sure this news will really have an impact on our SP today. The few days before august 28th should tell the story.
this is almost exactly where I stand - good post from you and Pete.
SM - that's not correct. We have taken a massive haircut on this investment. our old position was diluted. I haven't done the math but it's not pretty. We should move on from this one...and focus on Kenya/JDZ/EEZ.
agreed
would love to hear richkan's thoughts...
lol try - good one. charts have rally applied to this stock. how many times have we seen the analysis and what it's supposed to do the next day and then the opposite happens. this will move with news. I am hoping and thinking there will be some shortly.
sucks we ended red for the day but good week overall... hopefully there is some follow through next week and we dont drift back down like last rally.
it's going to be a pretty big loss based on previous calcs. I think this one should basically be written off. I will give them a pass on this because of Kenya.
last i checked you weren't MTO...which is who my post was addressing, no?
makes sense to me Krom. let's hope
good post agreed - maybe I should leave the country more often... nice little run-up and volume.
hmm let'see.... we get good news about Kenya and yet the stock sinks... then MROMRO posts a report about B1 that's not particularly promising from July... but yeah.. you are probably right.
Actually it doesn't... at all.
hate to say it but I think the recent trading/fall even after Kenya is partly due to poor JDZ B1 results.
yep this stock has been being accumulated for about 10 years now... that's why the chart is sloping downward. I am guessing the cabal of accumulaters will finally let it go in 2021. at least that's what my chart tells me.
agree 100% with this...
Krom - i don't believe there will be a buyout until there is at least some oil proven in one of the assets. I just don't see anyone paying SEO's price for a bunch of unproven assets. I do agree though that ERHC did gain some leverage with Kenya and I do think 10 cents is undervaluing the company even if there is not alot to go on in terms of the value of our assets...
I hope you realize that my post was pure sarcasm... I agree that the reason the market is yawning at this positive news is that cash is low and the market needs to know how we plan to exploit these assets... not just hope and prayer that someone will swoop in (or hit the shelf...bad)
he's talking about the shares on the german exchange... it doesn't mimic the price over here. it's a different exchange.
agreed - i expect Kenya to be much easier to find a partner than chad by a longshot. If we don't hear something soon...as you say.
Gotta like this news but as I said last week, the market needs more clarity as to how they are actually going to exploit and/or fund these assets (hence the minimal SP/vol movement today).
i would think this Kenya news would add more to the SP. I think the issue is that the market is concerned with funding. It sounds like (according to DK) that there is no master plan... just the hope that they will be able to monetize Chad or the EEZ. So far they haven't had any luck and the market sees that and is in a wait and see approach. The backup to Chad and EEZ is the shelf which obviously scares the market even moreso. just some thoughts as I really view this Kenya stuff as good news (if they would just clarify how they plan to take care of the funding for all this stuff).
good stuff...thanks
Until ERHC articulates how they plan to fund everything (besides the shelf)... I can't imagine the market will get too excited. I like the diversification but we really need to know how they plan to pay for it all.
the constant hand-wringing by this board and the others about negative posters is getting just as redundant as our resident redundant one. Go to any message board for any stock... this is simply the way it works. There are negative and positive posters everywhere on every board. If you really want the answer, you will have to understand the psychology of every poster because every poster has a different reason for what they post. The posting here has zero impact on the SP other than maybe the 5 minute chart if someone posts something juicy. The sooner people realize that, the sooner they will learn to just ignore what they don't want to hear.
Personally, I am happy to hear both sides as I am secure enough in my investments to want to hear all sides.
I laugh everytime i hear the "why are you here?" that line is probably stated 1 million times on IHUB daily. it's just the way it is.
I have agreed with you at times in the past but this is just getting ridiculous.
agreed - never said I thought your number was wrong just that I disagreed that 80% participated in the directors vote. we can move on... would love to hear something on B1.