Take it from people that know...
Posted by: jbofthecloth Date: Wednesday, January 20, 2010 11:16:23 AM
In reply to: emdyal who wrote msg# 195377 Post # of 195659
You dont list a company like this in any US market if you have a choice. You list on AIM or Toronto. Aim is better for visibility into Africa and access to local Nigerian investors. Regardless whether discussions are on with Sinopec or not re a buyout, they have to move forward. This is moving forward.
Posted by: jbofthecloth Date: Wednesday, January 20, 2010 10:12:34 AM
In reply to: marty260 who wrote msg# 195300 Post # of 195660
Aim is a nice step up from OTCBB. AIM listing requires a resource to company file and keep updated a "Competent Persons Report"; a report from a recognized person or company, like NSAI, that maintains current information of the company's resources. That's more than we get now. Most importantly, however, the AIM listing will allow local Nigerians the chance to play ERHC. No US broker would allow a Nigerian to open an account to trade stocks, but Strand will. Strand, strandhanson.co.uk, has a JV with Renaissance Capital announced Tuesday. Renaissance bot 9.9% of Strand. Renaissance, www.rencap.com, is the only broker with a real Nigerian operation staffed with real bankers and analysts and commitment to improving the access to capital of Nigerian plays and open up world exchanges to Nigerian investors. We can look forward to research coverage as well. Strand is a very good boutique Nomad. I like this alot.
Posted by: midtieroil Date: Wednesday, January 20, 2010 10:15:56 AM
In reply to: Homeport who wrote msg# 195297 Post # of 195660
I don't think AIM is the best exchange around but it is a HUGE improvement over where we are now. On the upside the costs and reporting requirements on the AIM are substantially lower than the US exchanges. I don't know how much lower since we are already a full reporting company and are meeting all SEC reporting requirements already. On the downside, we don't have all of the protections afforded by those additional reporting requirements which is something that would be nice considering our Nigerian ownership. Being on the AIM definitely would allow us to attract more institutional investors which is probably the biggest plus.
I know I'll catch hell for saying this but I wouldn't mind seeing a reverse split and fewer shares outstanding as part of moving to the AIM. I think that is a possibility. 700 million shares is just too many and the stigma of a reverse split should have gone away, but it hasn't. Most companies that are doing them now have good reason and have been successful afterwards.
Overall I see this as a big plus but I don't read anything into it in regard to what was discovered in the JDZ or any potential buyout possibilities. Those things are different animals have nothing to do with this move. As far as any potential acquisitions go, I also doubt that is a part of this move but we'll see.
AI
