That other company placed shares with Blackrock and made that known at the time of the placement, that's what fueled the continued rise. When a small company places shares with a reputable firm, the market see's that firms involvement as a sign of reduced risk.
ERHC's first placement was a disaster. They undercut their own shareholders by placing shares at 22 cents when the market price was 30 cents, and the placement had significant warrants attached to it. If the share price ever advances significantly those warrants will come into play. In that event they will have placed nearly 20M shares (if I remember the warrants correctly) and raised $1.8M dollars.
1.8M / 20M = 9 cents per share... when the share price was 30 cents.
On top of ALL of that, they placed the shares in an anonymous arrangement and to this day won't disclose who the recipient was. That *other* company continued its advance because they placed with a highly respected firm and proudly announced it. ERHC management still cowers in the shadows and refuses to answer any question about who recieved those shares.
Have I turned to the dark side? No. But when they execute an incredible stupid business decision I have no choice but to call it as I see it. If they go the anonymous route again and go big on the placement, the shareholder participation will be non-existant and the stock will go sub-penny.
It is **ALL** up to Peter Ntephe and the BOD of ERHC Energy. Do they have even a "basic" understanding of the OTCBB, or don't they? I'm hopeful, but concerned. If the magnitude of the rights offering puts it out of reach of those it is suppose to benefit, then this is all a game to remove retail shareholders from the picture.
If these issues aren't addressed by Peter Ntephe on the 28th, he is clearly *not* working in the best interest of all shareholders and should be removed.
As I said earlier, I am excited (and scared) about that date.
People maintain anonymity for a reason and it is rarely noble.
