If ERHC is continuing at their published burn rate of 4.5 million per year that 250K will be gone by early next week. I really don't see this as Chrome coming to the rescue. I see this as Chrome protecting their own interest for a very small amount of capital.
One question for you. Do you think Chrome will try to maximize the number of shares they get by converting their debenture at the lowest price possible? And won't this cause the same amount of dilution as any other debenture? It may be better that Chrome has these shares than having them in the hands of some predatory loan shark because, perhaps, they won't sell the shares and drive the price down. But we don't really know that.
And we don't really know if ERHC issued more of these before the Chrome debenture or if they will issue more of these debentures to outsiders. And we don't really know if Chrome will continue to fund ERHC. And until we do, I don't think you'll see a lot of new money coming into this.
I think these are questions that must be answered BEFORE the April round of debentures become eligible for conversion. Otherwise, I could easily see ERHC going trip-zero. And that is something I do not want to see.
By the way, I do believe ERHC is trading below its asset value. But that is irrelevant if ERHC doesn't have the cash to survive until drilling or if current shareholders will get diluted into oblivion before drilling. That is why the share price is where it is. Nobody knows.
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