ERHC Energy Inc (ERHE)

[stocks2rise]

Concurrently with the Acquisition and as a condition precedent to completion of the Acquisition ("Completion"), Exile intends to, by way of plan of arrangement (the "Plan of Arrangement") and subject to receipt of all necessary approvals, change its name and effect a consolidation of its outstanding Shares on a basis such that the current shareholders of Exile shall receive in exchange for each 20 Shares currently held: (i) one post-consolidation Share; and (ii) two share purchase warrants of Exile one of which will be exercisable for one Share at a price of US$3.00 per Share for a period of 12 months; and the second of which will be exercisable for one Share at a price of US$4.00 per Share for a period of 24 months. The parties have agreed that they may, subject to market conditions, complete a financing on or prior to Completion pursuant to which purchasers will, in effect, receive up to 20,000,000 Shares at a price of US$3.00 per Share for aggregate proceeds of up to US$60 million (the "Financing", and together with the Acquisition, the Plan of Arrangement and related transactions, the "Restructuring").

Well this explains why ERHE bought so many shares recently. Think a little insider info is going on? Perfect timing on ERHE's part.