ERHC Energy Inc (ERHE)

[Krombacher]

A reverse split in and of itself does NOTHING. All a reverse split is a higher share price but fewer shares owned. The overall investment doesn't change.

Where an R/S is the kiss of death is when it is perceived that after an R/S, there will be yet more dilutive activity pushing the share price back down.

In essence, the market hates the dreaded reverse split because it imparts ZERO discipline in refraining from printing shares. The A/S effectively caps what can be printed...but an R/S circumvents that cap.

90%+ of companies who do an R/S suffer or don't recover...that's a ballpark figure, I have posted articles on this however...

...but some do recover. It all depends on what they plan to do with the R/S.

Is the R/S SOLELY to get back on the OTC and off of the pinks with a higher share price? Or is it to do yet more diluting?

Depending how that question is answered and perceived determines whether the R/S puts us into the 90% loser category or the 10% rare winner category.

Krombacher