ERHC Energy Inc (ERHE)

[ssc]

That was an interesting math exercise. One point left out is what the stock price would have to be to break even after buying the delusion insurance. Somewhere north of $12/share I believe or a market cap of $360 million. That's if the share count stays at 30 million. Now suppose that strategic investor comes along with $10 million to invest. How many shares would he be looking for? At today's price about 100 million shares. No problem for ERHC because they have 2,970,000,000 available to issue. But for the delusion insurance purchaser in the math exercise it would then take a market cap of $1.5 billion to break even.

How much oil will CEPSA have to find for ERHC to sport a market cap of $1.5 billion?

Not bloody likely. Of course most people understand the real game plan here is to get the stock price somewhere between 40 cents and $1 so all the shares purchased in the triple zeros can be cashed in for big profits before a strategic investor, NGAR reverse merger, or convertible notes kick in. $12/share and no further dilution? Yeah, right.