ERHC Energy Inc (ERHE)

[Strategyone]

One Conspiracy theory I can factually put to rest.

For those of you who may still think the recent private placement was a single payoff to “friends” or people owed by ERHE or even people in Nigeria, I have verified in this case, that this is a false belief.

It turns out to be a small world sometimes. I have run across a US based Hedge Fund manager who participated in a “piece” of this placement directly. Yes, this private placement was not all sold to one entity or person. It was broken up. The transaction was exactly as stated by ERHE - a private placement to raise capital and it was all above the board and legit (no conspiracies or private payoff).

What was stated in yesterday’s PR is also correct in that the participants in the private placement have the choice to remain private as long as they don’t exceed 5% ownership in the company. I do not find anything unusual about this due to the relative small size of the pieces.

One other tidbit of information I will pass along is that some posters in IHUB were correct in that shorting of ERHE stock is taking place to lock in a profit (I have seen the transactions myself). This is a common strategy used in the industry by hedge fund managers (hence the title “hedge”). This strategy will put a temporary downward pressure on the stock price while it’s going on but it is done very systematically to keep volatility under control and lock in a minimum return.

That is all I have for now.