Replies to post #217584 on ERHC Energy Inc (ERHE)

[Strategyone]

Don't hyperventilate before you understand the facts. This is a filing to inform the investing world that ERHE would like to issue shares to raise UP TO $50,000,000. Keep in mind there are also limitations. The company only has 950M of registered common shares of which 723,050,444 are already outstanding. There is less than 227M to issue freely and that would leave none for executive and BOD compensation/incentive bonus etc. It does not say the sale will be tomorrow or at tomorrow’s stock price. This is setting the table for after the news release or getting ready for the AIM (IMHO).

Some things to consider: What will the stock price be if ERHE announces partnerships in the two EEZ blocks (and it is not SINOPEC)? What if they receive $50M or $100M in cash with these partnerships? What if Sinopec announces confidence in what they have drilled in the 5 holes of JDZ phase I and they submit a plan to the JDA for Phase II drilling? Where do you really think the price may land if one or all of these scenarios get announced over the next two months or so?

If the stock price goes to $1.50 and the company issues 33M new shares to raise an additional $50M, I probably wouldn’t get very upset over it. If they sell 200M at .25, I will reanalyze my long term position to say the least……

[tryoty]

Nobody said they would raise the money at so low of stock price. This could be the first step toward the AIM list and the truth about what was really found.

[mrpoopyface]

WHat part of "Nigerian Stock" don't you understand?

[sneak-attack]

TOM: They could sell 14 million new shares at $3.57 in order to raise $50 million cash. Any more additional shares than that could cost SEO and Friends Controlling Interest. That additional cash would be worth about .10 of the current .22 cent share price. Surely the JDZ and EEZ is worth more than .12 a share balance.


Sneak

[bayfisherii]

It will be interesting to see who buys this offering. The powers that be seem to have been trying to shake off fragile investors for the last 8 months. With some success, but maybe not enough. If you look at the economics this could be a way for someone to pick up 25% of ERHC for only $50 million. If a buyout announcement is forthcoming then this is a great way for someone or something to grab a large amount of the future proceeds.

Devaluing your stock price by 25.6 % without a planned acquisition and publicly stating that it is only to allow ERHC to be able to target future acquisions especially when you have over $20MM in cash. This smells like a class action lawsuit and is another indication that Peter and the board are either up to something or are not thinking clearly.

Bay