ERHC Energy Inc (ERHE)

[Krombacher]

Short treatise: Anti-dilutive AIM listing.

Let's say we have a total float of about 700 million shares.

500 million convert their shares to the AIM, and the remaining 200 million stay on the OTC.

Therefore, to the American public, who don't want to pay extra in commissions, deal with F/X, and other issues, say taxes, they will now have a float of 200 million shares to buy from vs. 700 million shares.

Supply and demand. A smaller supply of shares on the OTC, but possibly even greater demand by Americans who want to buy. What do you suppose THAT will do to the share price? Ditto in England.

Of course, any gain due to supply and demand in the U.S. will go through arbitrage in the UK, with the overall effect of lifting prices.

Bottomline: You have a bigger pool of investors, and the same number of shares as before.

Of course, once it is time to do the marginal fields thing, then they will dilute by issuing additional shares on the AIM, but dilution would've occurred on the OTC instead had we not listed on the AIM. So the AIM listing has NO impact on anything, except in the positive direction.

Krombacher