Replies to post #232066 on ERHC Energy Inc (ERHE)

[hunter_gatherer]

I think the reason they did the shelf thingy was to show their cash burn was not as much as we all think.

"so Peter please explain!" I say Peter, please get out and take the others with you that went along with it...hunter

[2IRAs]

I don't want to talk down to anyone since I'm sure you all read the last PR. And, of course anyone can take issue with what he said if you want. But...

I think he gave a very summarized explanation as to (A) the buyer of the placement, (B) the determination of the discount, and (C) the reason for the initial sale being at an inopportune time in terms of share price, but necessary at this particular time to demonstrate the financial capability to raise more money for the acquisition. when he said:

A Our investment bankers and placement agents enabled the completion of a registered direct placement of approximately $2 million to institutional investor clients of theirs.

B The terms of our initial placement and future placements, including the requisite discounts, are the subject of careful determination.

C For many of the acquisition opportunities on which we compete in West Africa, evidence of progressive funding ability is required for pre-qualification and the success of our initial placement also enables us to demonstrate that ability to potential sellers of assets.