ERHC Energy Inc (ERHE)

[Mactac]

You guys are a bit confused. As a small ERI stockholder and not a ERHC one, this is how I read it:

1. ERI will consolidate its stock on a 20:1 basis so assuming that there are 100m now out, following consolidation there will only be 5m.

2. ERI will issue 100m new shares post the consolidation to Oando in payment for the assets being purchased. This will leave Oando owning +95% of the issued stock.

3. Exile, or whatever it is then called, will raise $60m at $3 per unit by placing 20m new shares.

4. Post all this ERI will have a market cap of $375m.

It seems to me that the whole deal is being done on the basis of $0.15 per share compared to the last traded price of $0.10, which may seem generous, but is not given the recent trading range.

I don't think that ERHC is going to find this a knock-out deal, but I may be wrong.

MT