It is absurd to think that a RS is part of a bigger plan when we all know the truth. ERHC had no other choice. They were forced to do a reverse split because they don't even have enough shares or cash to pay off the existing CDs and because they will need to issue many more CDs to make it to drilling.
As you said, the temporary stop to issuing CDs was due to the fact that they didn't have enough shares remaining to continue to issue more and more convertible debt. With no more shares available, continuing to issue them would have been fraudulent. Plus, the companies getting the CDs are certainly bright enough to know the number of outstanding shares was running dry. Now, with almost 3 billion new shares, they are dancing in the streets and will have a field day getting shares at a 60% discount to market price while others are buying "delusion insurance" at full market price.
Isn't it great that ERHC now has a lot of dry powder to keep pumping out those debentures, to keep paying them off in shares, and to keep diluting existing shareholders into oblivion. Ntephe will make sure he gets his money in the form of salary and will have enough from that to spend a fraction of it to prop up the share price to make sure the his gravy train stays on the tracks. Pretty clear, isn't it?
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