ERHC Energy Inc (ERHE)

[tryoty]

My favored scenario, and one I think management *might* be entertaining, is also a double edged sword (for me anyway)...

- This company need cash to grow.

- This company needs to issue shares to raise cash... giving away percentages for (onshore) carries is just far too expensive.

- To issue shares, this company needs buyers (partners) for those shares.

- To attract partners, this company needs balanced governance and a balance in power in the shareholder vote. Currently Offor controls the vote and the BOD and management were hand picked by him.

- As I've said repeatedly, they need to raise cash and they know that, Offor knows that. But they could have raised cash with the authorized shares they already have. What they are thinking is bigger than that. Three BILLION is a big freakin number!

- To achieve a balance of power Offor's percentage of control has to go down. Now consider this, Offor could sell off shares to acomplish this, but what would the market think of that? The controlling shareholder is bailing! Oh no! The only way to restructure the power balance is to offset Offor via share placements.

The double edged sword is that these placements would have to be much larger than I could ever hope to keep up with via the rights offering. I really have mixed feelings about that scenario, mixed feelings that I don't feel will ever go away... so I gotta deal with'em.