ERHC Energy Inc (ERHE)

[ssc]

You seem to have missed the point. The toxic notes that were outstanding as of the last report have conversion rates as low as 50% of the low of the day. As of today that would mean shares could be converted at 3 cents. Unless there is enough buying to absorb all the shares VFIN and BKRT have to sell, they will happily sell shares 20% or more above their conversion price, sometimes even less than that. They'll sell their 3 cent shares for 4 cents and happily book a 33% profit if necessary and in the process move the conversion price down to 2 cents and on and on (the definition of a toxic price spiral).

So far buyers have avoided making a lower low. That's good news. But this is on a day after a positive drilling update and the dilutive market makers still sit on the ask. We'll just have to wait and see who wins the battle if those 3 cent shares start hitting the market. I was simply saying it was sad that ERHC bulls allowed the price to go to 6 cents and what the repercussions of that might be.