ERHC management appears to be planning some sort of dillution to accomplish their acquistion of new assets as eluded to during the last shareholder meeting. Several investors have openly voiced their concern regarding these acquisitions and possible AIM listings. Management stately openly and in a press release their intentions not to dillute the JDZ assets in there pursuit of this new strategy. However, they did not directly state that they would not dillute our shares to accomplish acquisitions. I believe its a play on words because they are not going to leverage any of the JDZ rights, but are contemplating reducing our shareholder stock value in those rights. This may be the "mild RS" that ART2004 was referring to back in May after the Annual SHM or maybe in the form of issuing more stock. We won't know until they spill the beans and so far full disclosure remains cloaked.
As troy stated, they have now mentioned their plans to fund acquisitions through dillution. This whole plan is new within the last year and is a course change from the reasons many existing longs bought into the company and have hung on for so long. It also brings to light a calous fact that management has no personal financial risk involved in this strategy, unike the common shareholders who bellied-up to the bar with their dollars to invest in this company. Management conveniently have precluded themselves from having to buy through their own decree according to Fishdog.
If it happens before our shareprice rebounds great, but somehow, I believe they have had this strategy on the back burner for quite awhile and will put it into action just as our shareprice is starting to recover. This of course is all my opinion. Fellow shareholders though have already voted their confidence in management, and against those who are able to see beyond the spin of those connected to insiders. I would caution everyone to remember that we as shareholders have a voice and should vote do as troy suggests and let their opinion on any plan that includes dillution of the value of your shares.
Strass - back to lurking
