Replies to post #202833 on ERHC Energy Inc (ERHE)

[YankeMike]

The example you gave increases our assets, not reduces them as you said in the first line of your posts. So maybe the assets aren't increased as much as they potentially could be, but an increase is definitely different than an asset dilution.

Mike

[midtieroil]

I disagree. I call it leverage. ERHE will put a small amount of cash in and other investors will put a large amount in. Then you grow the business. Sure ERHE will have something at risk because you can't make something out of nothing. But to call this dilution is inaccurate and misleading. It isn't dilution in any sense of the word and it isn't a reverse split in any sense of the word either.

[Strategyone]

Nightdaytrader,

Anyone can throw out any example and I guess it is possible what you are saying. Why don't you spend two minutes to think about this scenario:

ERHC Energy forms a new company called Company X. Company X goes public or does and IPO on the London stock exchange for 40% of it's shares for $40,000,000. This is done on the business plan of some deals already inked or about to be for NEW properties in and around GOG due to Offor's connections (similar to Starcrest deals). ERHC Energy owns the remaining 60% for spinning them off and setting up the corporate structure and using its own business model......

BINGO, you just enhanced the assets of all the ERHC Energy shareholders by duplicating what was once done by ERHC with its JDZ and EEZ assets.

Let me see, SEO still gets new money, and he doesn't start a new investigation or get sued in the process......

My scenario is much more likely than yours. Why do you suppose this scenario sounds so familiar.... maybe because it is pretty close to what they have been saying for several years now but nobody has caught on yet....