Replies to post #127755 on ERHC Energy Inc (ERHE)

[Manti]

It's really very simple. The value to erhc of its subsidiary will be the market cap of the subsidiary (or at least erhc's owned percentage of the sub). As the sub's market cap goes up, so does erhc's book value, which should reflect in the erhc sp.

I love the business model. As an energy investment company, we only need talent to put together the deals, after that all it takes is bookkeepers to count the money. We should be able to grow faster and have a much higher return on investment capital if all we do is broker deals. Bring it on.

[tryoty]

ERHE will own the sub as one of its assets. The sub will have assets of its own. As the sub and its assets are assign a value by AIM investors, ERHE's asset, the sub, will be that value on the ERHE's books.

As an example only, say they list "ERHC block 4 Cayman" on the AIM. It subsequently is valued at $10B (hey, it's MY example!). ERHC Energy owns ERHC Block 4 Cayman, so ERHE's market cap will reflect the value of it's subsidiary... and all the other assets and subsidiaries as each is released like a young birdie from the nest, to forever fly on its own.

I *HAD* to get a birdie in there somewhere! LOL!

[redinvest]

Brez63,

Good question. Instead of the company listed on a few exchanges, same company share everything, this is different.

ERHC, now listing on the OTCBB will have controlling interest on a subsidiary on another exchange. Since ERHC will own most the subsidiary after the IPO ( remember, you only put a portion of the shares of a company up for the IPO ) AND, if that subsidiary gains in value, then ERHC's pps gains as well by extension, since ERHC still owns most the sub even after the IPO.

Hope this helps.

Red