ERHC Energy Inc (ERHE)

[tryoty]

re: rights offering...

I just did a quick analysis as it pertains to my free cash flow. As long as ERHC places $5M worth of shares (regardless of price) and does not do it more than every 90 days, I can afford to offset the dilution by participating in the rights offering.

If they go any higher than that I am going to be diluted because I don't have the FCF to keep up.

Their last placement was for $2M, hopefully they are thinking in the same ballpark. The share price doesn't matter, I calculated various increments from 10 cents to $1.70, as long as they limit their capital raises to $5M, not more than every 90 days, I can do it.

I'm not saying I *will* at this point because if they aren't transparent about who they are placing the shares with at the time of each placement, I will probably be able to buy shares cheaper on the open market after the placement.

It will be interesting to see how this plays out over the next few years.