SSC, I appreciate your comments, but I’d like to clarify a few points and add some nuance to the discussion.
1. The Gag Order & Financials: You mention that close to 30 companies were involved in the revocation dismissal, but let’s focus on ERHC specifically. Yes, it's true that ERHC released some 8-Ks about lawsuits. However, the fact that they selectively released information while remaining tight-lipped about financials suggests that the company was operating under specific constraints. It's not outlandish to propose that a gag order (or some type of legal constraint) was involved, especially when ERHC gagged its own transfer agent, which is not typical behavior unless there’s something important going on behind the scenes.
The point about the SEC having specific procedures for confidential filings is valid. But companies don’t always go down that route for several reasons, whether due to internal decisions, negotiations with creditors, or ongoing investigations. It’s possible that ERHC felt maintaining this silence protected ongoing negotiations or sensitive information. While the precise nature of the gag order remains speculative, ERHC's silence on financials and key details for an extended period points to something more than just oversight.
2. Convertible Debt and Ownership: Your argument is that the filings ERHC did release clearly showed the rising share count post-reverse split, and that Offor’s and Chrome's ownership fell drastically. However, this ignores the fact that Chrome's position might have been held through other vehicles or structures not directly listed under Chrome or Offor’s names in the filings you’re pointing to. It’s not uncommon for entities or high-net-worth individuals to use various structures to conceal or obscure their true ownership stakes—especially if there are strategic reasons to do so.
While the filings showed Offor’s ownership reducing on paper, it's possible (and again, speculative, I admit) that new convertible debt issuances could have been structured in such a way that Offor regained a controlling interest behind the scenes through gagged or hidden transactions. This wouldn’t need to be reported immediately if there were specific clauses in place due to ongoing negotiations or debt restructuring.
3. The Short Squeeze Speculation: You also ask about the short squeeze narrative. It's important to note that short squeezes don’t happen overnight, especially when you're dealing with a company like ERHC, which has faced its share of legal and operational hurdles. Many factors contribute to whether and when a squeeze materializes, and timing can depend on catalysts—such as corporate actions, buyouts, or settlements—that have yet to play out.
As for proof of the short positions, ERHC's lack of filings, Caveat Emptor status, and the complex debt structure make it difficult to pin down precise short interest data. But logically, the conditions are ripe for shorts to have piled in, especially when ERHC was facing so much uncertainty. You yourself pointed out that the share count ballooned to 2.9 billion—an ideal setup for toxic debt shorts to see a profit opportunity. This isn’t an outlandish theory, especially when so many penny stocks with convertible debt structures end up attracting significant short interest.
4. Why It's Important to Clarify: Speculation is part of the game in the world of OTC and distressed companies. We all make our bets based on the information available, our interpretations of filings, and yes, sometimes speculation about what might be happening behind the scenes. The fact that ERHC hasn’t publicly addressed certain key issues—including the precise role Offor has played recently—leaves room for interpretation. It's not about perpetuating lies but about putting together a coherent picture based on what we do know and what’s reasonable to speculate, given the history of the company and the behavior of players like Offor.
Finally, I’m not claiming everything is set in stone. But in the world of small-cap stocks, especially those with complex ownership structures, there’s often more happening behind the scenes than what’s immediately obvious in filings. Let’s keep the discussion going, challenge each other’s ideas, and remain open to where the facts and logical speculation may lead us.
Krombacher
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