ERHC Energy Inc (ERHE)

[Krombacher]

ssc,

In the post i'm replying to you said:

"Maybe they issued them to one of the outstanding toxic note holders who shorted at .0002 and used those newly issued shares to cover at a very small fraction of that price."

So I was thinking about this. The convertible notes all matured or were converted long ago, I think. So it couldn't be existing notes... since they're probably all gone.

Your suggestion seems to be that erhc would issue 140 million shares at $.0003. But we weren't there for 60 days, so if they issued them it would have to have been at .0002. Which is $28 thousand bucks.

Just the legal work to issue and raise 28k would probably cost nearly $28k. Hardly worth it, I think.

Hence, I conclude that it couldn't be convertible note holders who sold to the person accumulating and locking down those shares until oil or buyout.

It had to be shorts.

I guess you could argue it was someone holding long 140 million shares or more, who just got fed up and decided to sell, but someone who had accumulated that many shares would not likely get fed up or if he did then it would have happened a long time ago. Hence, it can't be this case.

Has to be a short seller who foolishly sold and now can only get out if erhc goes bankrupt, which offor probably won't allow.

All of the above was made up while sitting in the dark.

Krombacher