ERHC Energy Inc (ERHE)

[traderalph]

The warrant holder is under no obligation to excercise the warrants. When and if the warrants are excercised, it will be to ERHE's disadvantage. The warrants are in the money when the market price is over .28. Any shares obliged by ERHE to sell at.28 is ERHE's loss because they could get the higher market price at that time by selling in the open market.

I think there are other provisions in the prospectus giving the warrant holders additional rights. I only scannned the filing looking for the basic numbers.

As others have stated, the warrants were given as an inticement to buy the common at .22.

Ralph