ERHC Energy Inc (ERHE)

[tryoty]

s2r,

I apologize if I came across as condescending. I didn't mean it that way at all. This company has two basic choices, raise money or go out of business. They chose to raise money. They have only 3 ways to raise money. One is through debt, unfortunately the only entity that would ever consider loaning ERHC the money they need is Offor, who would require a boatload of shares as repayment for that loan. The retail crowd would be frozen out and have to endure significant dilution. The other two options involve issuing equity. They could do a private placement, but as we have seen in the past the terms can be toxic and detrimental to the share price. Even in this scenario the retail crowd is frozen out and has no choice but to endure the dilution and toxic effects of the placement. Lastly, they could do a rights offering to all shareholders giving each and every one a path to prevent dilution and do it with the same terms as any other participant. That's the path they chose.

They cannot give shares away to those who can't afford to participate... the whole idea behind doing this is to raise the capital they need. They are moving forward with the most shareholder friendly option they have available to them.

I gather from your post that you cannot afford to participate. I think many, if not most, are in the same boat. The point is that they made the option available. What would you have them do? They need money or it's lights out. Then we would have nothing.

I understand your frustration because I feel it as well, but to trash this plan when every other option is more damaging to us isn't helpful.

In a perfect world a farm-in partner would approach them flush with cash and offer a full carry agreement and allow them to keep more than a token percentage of their blocks, but this isn't a perfect world, that agreement hasn't materialized.

I'm sorry if I offended you, I didn't mean to.