ERHC Energy Inc (ERHE)

[midtieroil]

IMO doing that financing under those terms showed weakness, not strength to anyone that knows anything about finance. It also showed the company is clueless and it will not attract any legitimate investors. What it will attract is a bunch of loan-sharks who will insist on an even better deal than was offered to the last investor.

If there were a clearly explained need for the cash or if the company needed the money to survive maybe it would have been OK. The way it ended up being done was amateurish at best and more than likely it was foolhardy. Apparently the market agrees. It was NOT well received and the stock has done nothing but go down since.