Capital raised via issuance of new shares is not likely to produce more assets. In the position ERHC is in capital raised will likely be used to pay operational expenses. While some of those expenses will be the analysis and drilling of the Chadian blocks, which could add significant shareholder value, your statement that "no dilution coming" discounts the effect on each shareholders piece of both the JDZ and EEZ pies. If they raise $50M as stated they will need to issue over 200M shares at around 18 cents. If a discovery is subsequently made in the JDZ or EEZ, the the value of that discovery *WILL* be diluted by those additional 200M+ shares. For example, if a discovery is made in the JDZ that sets ERHC's cut at $1.5B (hypothetical), its value to current shares would be $2 per share. If 200M+ shares are issued, its value would be $1.50 per share.
The only way each shareholder can preserve their piece of the pie is, as TOB said, to offset the dilution with the purchase of additional shares. Assuming any issuance is book nuetral (which I discounted with my opening sentence) then each shareholder would have to add an equal percentage of shares to the percentage of dilution. In this example they would be adding 200M shares to the 750M out, or about 25% dilution. To preserve your piece of the pie you would have to increase your position by 25%.
Fortunately(?) since I don't believe the raised capital will produce new assets, the share price *will* take a hit to adjust for the new shares out... about a 25% drop, so you should be able to add to your position at 7-8 cents. For every 100K shares you would need 25K more, or another $1875 of stock at 7.5 cents.
It all boils down to this... do you as a shareholder have faith in what ERHC has done, is doing, and will do going forward to throw more money at it? That's the nut we will each have to crack **IF** a significant dilution like the above scenario were to happen.
ERHC's CEO has said that the current share price prevents raising capital at this time, so this really is all just fear mongering... a tempest in a tea cup.
