Replies to post #262662 on ERHC Energy Inc (ERHE)

[petemantx]

My point was that with the dilution of Exile to existing stockholders owning only 4% of the stock it takes ERHC ownership of the new company down to nearly nothing so the return is going to be very poor. I hope we get some of our money back but IMO most of it is gone as is the investment of all other pre-deal Exile stockholders.

The idea was good re: Exile as it certainly had value but I am in the faction that is still scratching our heads over why our intentions re: Exile were made public before the deal was finished. I think when we started courting Exile Oando already had a deal pretty much consummated. Someone didn't do their homework IMO re: the Exile/Oando relationship as Oando always had an extremely strong inside track to any Exile proceedings. JMO.

I don't expect this incident to be more than a blip on the screen of ERHC when looked at from a point a year or more in the future.
Not happy with it but don't feel it seriously hurt us.

[tryoty]

Buddy, sure, they can sell the shares they bought, but why bother? Maybe OER will hit paydirt. ERHC had a 7.35% interest in Exile, which now has a 4.6% interest in OER. ERHC owns 7.35% of 4.6% of OER... which is a 0.34% ownership in OER. For every $100M in OER market cap, ERHC owns $334K. OER is going to have to trade well over $500M for ERHC to break even on cost.

Let's see where OER trades on the 30th to figure market cap and ERHC's stake. Selling it would have insignificant impact on ERHC's financial position. I think it should be held as a lottery ticket kind of thing.