Replies to post #298151 on ERHC Energy Inc (ERHE)

[ssc]

How do you know that?

[PieEconomics]

As I mentioned in my question to DK, whether and at what price Chrome sells its stock acquired in a conversion is a separate issue.

If the price continues in a free- fall, and Chrome continues to be issued convertible notes with no floor, the retail stockholders will be shouldering all of the dilution which could become massive and prevent them from profiting from their stock even if oil is found.

Let's start a campaign to get this issue resolved before the free- fall gets much worse. Let's all send emails to DK and Peter, and continue to post here about it.

[steelwundrin]

SEO is preserving his own investment with the $250,000 cash loan. The probability is quite high that this is a stop-gap until something bigger comes along. Something could already be in the works - if not, he may have to step in again as required to avoid bankruptcy. I do think that it is telling that there have been no cost reductions announced.

This $250,000 loan is quite small in relation to his original investment and also in relation to his portion of the new stock issue a couple of years ago. Had SEO and Chrome participated in that 7 1/2¢ per share stock transaction, approximately $28 million would have been infused into the company. And we wouldn't be in this fix today. But quite frankly, even in light of the current oil slump, our assets are far more valuable today than they were two years ago.

[midtieroil]

The smartest thing ERHC could do is use the proceeds of the chrome debenture to pay off the toxic convertibles if that is even possible. But my guess is it is going to go to pay Ntephe's bloated salary instead.

Potentially the selling of hundreds of millions of shares that would be sold on the open market and which would drive the share price down farther could be avoided.

That would be the smart thing to do especially if Offor plans to further fund ERHC. Since that is the smart thing it is almost a certainty that Ntephe won't do it.