Replies to post #224940 on ERHC Energy Inc (ERHE)

[Krombacher]

amj23, thanks for the explanation, but here's the problem. **If** their goal is to control 50% then they must realize that every time they issue shares they are diluting their holdings (unless they are issuing to themselves).

If they are issuing to themselves here's the deal.

They would have to issue 107 million shares

Here's why:

The ownership percentage formula is equal to (Total Shares Owned / Total Shares Outstanding)

IF you are printing shares, and therefore increasing the numerator, then you are also increasing the total shares outstanding, the denominator.

Hence, you are diluting your original interest but at the same time giving yourself shares to offset the dilution and then some.

So,

 
 Total # of Shares issued		107,120,423  
 			 
 Total Shares now		        723,000,000  
 			 
 	SEO owns now		        308,000,000  
 			 
 	SEO could own a total of        415,120,423  
 			 
 	Total Shares After Issue        830,120,423  
 			 
 	SEO's Percentage		0.500072533 
  
 

Krombacher