ERHC Energy Inc (ERHE)

[ssc]

If erhc ever actually does get some kind of cash plus carry deal, 2 things should happen.

First, they'll use the cash to bring filings up to date IF they plan on remaining a public company (since monetization of assets was what they needed, as they told the SEC in their pleading not to be revoked). If their plan was to go private all along, then it's game over for all outsider shareholders.

Second, they'll pay off outstanding debts from legal expenses, lawsuits they lost and anything else that has piled up over the last couple of years.

Then, they will get back to operating as a public company again. And that means taking advantage of the most fundamental reason a company goes public - access to capital.

Unfortunately, erhc is maxed out on shares to issue so it will either raise the number of authorized shares or do another reverse split to allow it to raise cash via dilution. My bet would be a r/s since they have experience doing that and have had no problem wiping out the investments of 2 generations of erhc shareholders in the process.

As the mantra has been, no problem if dilution is toxic to the share price as long as it is not toxic to the company. In other words, bye bye to the large positions purchased at $.0003 or lower as another 1:100 and subsequent dilution will vaporize those holdings.