Reg. I agree that with the skills of ERHC management team, and also their great projects, that we will be smiling big time. However, my belief is that we will see significant price increase soon for many reasons.
1) In the month of June, it is quite possible to see the deals with
at least Panama and Mexico finalized and announced. Remember, based on the revenue projection for Panama Canal concession alone, we can see net income of $0.5 to $1.0 mil per month.
2) I do not expect ERHC to use financing that will lead to share dilution. In fact, as stated by CEO Sam Bass in an earlier news release, ERHC can obtain alternative financing for each of their project because of their fundamental value as assessed independently, and that will not lead to the massive share dilution as required for instance from the $10 mil line of credit with Kingsbridge.
3) Again, with regard to financing, as stated in the their 10Q on May 19th 1998 from Edgar, and also available from Yahoo, alternative financing with Security Capital is being arranged - $50 mil by public debt offering, and $2-5 mil by Preferred Share offering at $10 per preferred share. They also explain in this 10Q why the deal with Ray Dirks was not completed - mainly because of the departure of key personnel from Dirks group, who are now with Security Capital. The address and phone number of Security Capital is also provided.
3) It is possible to see major oil&gas and drilling companies forming joint ventures with ERHC, and obviously at such a time the share price and company strength will reflect this.
4) Please note the the IR firm Premier Equity is there mainly to assist ERHC with Internet exposure, and that the IR firm Demonte Associates in NY (212-473-3700) should be contacted for company information.
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