ERHC Energy Inc. Shareholders Approve Reverse Stock Split
Positions ERHC to take advantage of merger and acquisition interest
HOUSTON, December 16, 2015 – The Shareholders of ERHC Energy Inc. (OTCMKTS: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, have overwhelmingly approved a 100-for-one reverse stock split. More than 85 percent of the votes cast, a quorum being present, were cast in favor of the reverse stock split. The management and Board of Directors of ERHC proposed a reverse stock split as a way to enhance the Company's balance sheet, while better positioning ERHC to take advantage of certain merger and acquisition interest.
The vote total announced yesterday during a special meeting of the Company's shareholders (subject to final certification by the Inspectors of Election) was:
• For: 2,232,195,312
• Against: 270,236,405
• Abstain: 16,538,242
The Company will now undertake the regulatory and administrative steps necessary to make the reverse stock split effective.
"We thank the shareholders of ERHC for approving this proposal, which we anticipate might strengthen investor interest in the Company and make ERHC more attractive to major new investors and potential business partners," said ERHC President and CEO Peter Ntephe. "This action clears the way for ERHC to pursue strategic capital-raising opportunities and potentially value-enhancing mergers and acquisitions activity."
ERHC holds a 35 percent interest in Kenya Block 11A, where the first exploration well is expected to be spudded toward the end of the first quarter of 2016. In Chad, ERHC is accepting tender proposals for a 2-D seismic acquisition program for Block BDS 2008. In the Gulf of Guinea, ERHC holds 100 percent of the rights to Block 4 in the São Tomé and Príncipe Exclusive Economic Zone (EEZ) Block 4 as well as the option to take up to a 15 percent working interest in each of two other unlicensed EEZ blocks of its choice. The Company also has interests across several oil blocks in the Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ).
