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pinecat

06/07/05 2:28 AM

#4942 RE: snow #4802

Snow, I bet I'm not the only one who wished you'd waited to purchase later in the day. I am not worried for my shares, but wish I could afford some at 50 cents again....

Homeport, re restricted vs unrestricted shares. I am no stock genius. Shares in a company can have restrictions applied to them so that they can not be sold for a given period of time. My understanding is that the notes on restricted shares clearly indicate their restricted status. Such restrictions were supposedly in place for the shares Offor released to AFB to resolve his lawsuit. Shares offered in private placements are also often restricted. For instance, ERHC management could agree to sell all stockholders as of a given date the right to purchase shares of ERHC for a 25% discount off of the current SP, with the stipulation that the shares can not be sold for 1 year. (Hmmm... would this be considered "dilution" if all stockholders of note were offered a chance to buy in?) HomePort, you asked whether you should wait to purchase your shares to get a better deal "after dilution", that all depends upon the market perception of the dilution. Those in the know will be way ahead of you here. A few of us were blown away that the market reacted so favorably when Offor sold himself shares on the cheap last January instead of holding ERHC's debt and selling shares after awards (when surely the shares would be worth a buck!). If I were as cool as Manti (peanut butter and jelly tonight?) I'd be buying all along and be as thrilled to purchase at 53 cents now as at 75 cents a month ago. Thanks, Homeport, for all your interpretation of the Sao Tome news.


SH: ERHC does need some money, maybe not $50M, but our current $1M buffer is dangerous. Our current low SP makes classic dilution even more costly. I agree with your negative stance of ERHC using dilution to buy into the NEEZ. Though it'd be great if Offor's influence in the NEEZ could be traded for carried rights. Doesn't sound like the NEEZ is being over-subscribed, though. I too would like to see block 5 traded out (if possible) in lieu of dilution or loss of acreage in blocks 2 and 4.