Addax Petroleum (fka AXC)

[tryoty]

I asked about merger scenarios since that is the guidance Ntephe gave. You answered with an Offor buyin. I don't have a problem with a post split buy-in... even increasing the post split 30M shares to 45M to give the buyer a majority if necessary. But let's do the math here... what does ERHC need to get CORFORTABLY through the drilling process, $5M, %$10M?

The company's market cap is $3.9M and will go sub $2M this week... maybe all the way to $300K at the dreaded price of $0.0001

Will Offor pay $5-$10M for 50% of a company worth less than $2M or even as low as $300K? Can Offor make such a transaction and not draw significant attention from the athourities? I don't know. Someone paying 10-20X a company's market cap for only half the company is illogical.

Now let's get back to the merger scenario, which is the combining of two companies to become one. EHRE is worth less than $4M and will be halved or worse this week. Ntephe is not suggesting a merger of equals here. There aren't any compnies with $5M cash to throw our way with a market cap of only $2M. This "merger", to my thinking, will have to be with a MUCH larger company... like Tullow. Let's look at the math:

For every 1 million share of ERHE you have now worth 0.0013, you will have 10K post split worth 0.13 each, or $1300

Tullow closed at $3.10USD equivalent, so a merge now would mean $1300 / $3.10 shares of Tullow stock... that's 419 shares.

So a holder of 10,000,000 ERHE share would get 4200 shares of Tullow, probably more there would be a high premium from these depress levels, I would hope. SO round up to 10,000 tullow shares for your 10,000,000 ERHE shares.

What will a company Tullow's size do with a discovery... double in size, MAYBE? So your 10,000,000 share of ERHC become $60,000 after an oil discovery.

I haven't ridden this train from hell for a decade to get $60K for each 10M shares. No way in hell that's going to please ANYONE.

So please, give me a MERGER scenario that leaves ERHE shareholders some upside.

Our best hope is that Offor flips ERHC $5-$10M for 15M post split shares giving him a majority by a comfortable margin. But Ntephe has suggested that type of transaction. I wish he would.