Replies to post #263788 on ERHC Energy Inc (ERHE)

[vip1999]

I am not an accountant. However, this is what I see can happen. They list it on AIMS, With the money that they raised with the AIMS new shares, the shareholders of those share will also entitled some of the shares of ERHE. Now, how do they IPO these new shares(by the newly acquired assets or the older assets). Therefore, the spin off would hurt ERHE shares in the short term but they will raise money to discover oil and remedy that situation.

it might be too simple but certainly is do-able without diluting ERHE too much. But again, speculating and form a argument based on that speculation is as simple as the idea above.

Better yet, some one wants in and have the same amount of shares that SEO have and could not get it at a good price in the open market. therefore asked for 500,000,000 shares at .10 each, there! they got more than SEO at a fraction of a cost. Will SEO go for that... maybe noT....

[tryoty]

Where in the world do you get the idea there are going to be private placements of shares intermittantly.

From the press releases. LOL!

Under the shelf registration statement, when declared effective by the SEC, the Company may offer and sell from time to time in the future in one or more public offerings up to $50 million of its preferred stock, common stock and warrants, or units consisting of any combination thereof.

http://erhc.com/news/erhc-energy-inc-files-shelf-registration-statement-to-raise-50-million/


The first placement was for 10M shares and raised $1.8M. That's intermittently. They haven't raised fund since because the share price is too low, Ntephe's words. I could be wrong, but I don't see them going big early on unless it is a buyin scenario to reduce Offor's control and make the company more attractive to institutions, facilitating additional fund raising at considerably higher levels. Throw in a phase II announcement or a JV partner in Sao Tome and this won't hurt near as bad as many fear.

Admittedly, we need a couple things to go our way.