ERHC Energy Inc (ERHE)

[tryoty]

The flaw in that plan is if we buy now to maintain our percentage and they raise capital at this level...

a.) They only raise $18M

b.) They would have 950,000,000 shares out

c.) The share price would crater to 2-4 cents, maybe even sub-penny.

A big part of the problem is the company, per usual, will not state that they will not raise capital at this level. Quite the opposite, Ntephe continues to mention the shelf and their desire to raise capital. We could do as you say and buy now to balance against future dilution, but until there is management guidance that they will not plunge the knife in our backs again we could just be setting ourselves up for another 60-90% loss on the newly deployed capital.

That's why I was so vocal about the shelf reg when it came out and they immediately undercut the market. When the shelf was announced, the stock went up quite a bit because the market assumed this management was doing like most well run companies do and positioning to capitalize on a significant price increase. When the market saw the placement at a 30% discount to market the big red flag went up that ERHC Energy was in the dreaded "act of desperation" mode.

We haven't recovered from that, and absent stock moving positive news we will not recover from that... until management makes a commitment to not do placements until much higher levels. I said over a year ago that Peter Ntephe put an anchor on this stock with that shelf registration and no amount of your defense of him will take away that history has shown I was right.