ERHC Energy Inc (ERHE)

[emdyal]

So essentially they convert at a 50% discount to the current share price and sell to flood the market, drive the price lower and are essentially selling to themselves to cover their short positions ! So its pretty much a guaranteed 50 % on the conversion PLUS the possibility of much more as they cover their short positions and go laughing all the way to the bank !

Let us hope that Ntephe and the BOD were not particularly aware of this and next time will as you suggest will opt for a fixed conversion price , if at this point this is even an option !

The learning curve seems to be very steep for ERHC management and has cost shareholders big time ! And still no hints of cost cutting measures being put in place and management also goes laughing all the way to the bank ??