ERHC Energy Inc (ERHE)

[Strategyone]

Julius,


It is my opinion that people of the caliber of this board do not invest in any OTC stocks period. I have worked with wealth management of high net worth people for multiple decades. Once you have made your money, it is way more important on keeping it and lowering the risk. People who invest in OTC stocks, typically, still want to "hit the lotto". I fall in the second category.

Two of the Board members are retired and have very impressive backgrounds which means they probably are well set and have solid plans for their retirement spending. There usually is no need to dabble in OTC stocks when one has wealth like that.

Just because they are on the Board, does not mean they have to invest their own personal assets into it. I have no problem with companies that bonus stock to BOD members or give them stock in lieu of cash compensation (in fact, I prefer this option), but they are there to be neutral or challenging to the officers of the organization. If they had a lot of their own personal wealth invested into the company, I do think there is a slight conflict of interest. I would rather them keep focused on the business decisions on not ecstatic because they are up big or bummed because they are down big strictly on the current share price.

Keep in mind, I don't disagree with the assumption that IF the board invested more here, it would be a show of confidence.

As to the quote:

"The board and management of ERHC felt urgent action was needed to permit insiders the opportunity to show confidence in ERHC and its oil exploration assets,"

I read that as to saying the Board listened to management and changed the policy to allow management to purchase stocks. Not necessarily BOD people.

Does this answer your questions