ERHC Energy Inc (ERHE)

[Strategyone]

Great post and I second your thoughts. EO has nothing of value to gain by diluting his own (and his friends) shares to marginally increase his numbers and risk major lawsuits; freeze up of his assets (us stock) etc. Not feasible and completely foolish.

Finally, a note back to Krom, if EO wants more shares he could simply do what he successfully did in the past: 1) pay himself very well with stock options or stock compensation or 2) lend the company $50,000,000 in cash with a loan and pay that loan off later with shares. Very little legal risk with this approach. Oh, and you don't have to go through the legal expense of "shelf registration" to do this.

Bottom line is that the shelf registration is exactly what the company said it is. To raise up to $50M in cash if and when needed. Most likely used when they list on the AIM which also wouldn't make sense to do until they have VERY good news to move forward with (in order to attract new investors).