6.02% of its price, while its traded volume remained over 1 million shares. Looks like investors are disappointed by the stock and they are selling off ERHE shares.The most recent news about ERHC Energy came up last week, reporting that the company has posted higher general and administrative expenses for fiscal year ended September 30, 2010. The announcement was not confirmed by the company, however, is was strong enough to discourage traders and the low trade began.
Just a day before this news was published, ERHC filed its annual report, which itself proved the above-mentioned facts. As of end-September, the company has not generated any revenues, though its operating loss has increased as well as the reported expenses.[BANNER]
According to ERHC’s 10-K report, the company has no sources of revenues, a history of losses from operations and it depends on the ability to exploit its limited assets. However, the most interesting fact is that ERHC and its subsidiaries have only eight employees in total and they occasionally utilize the services of specialized consultants on an ad hoc basis. This, along with the company’s lack of cash resources, means that ERHC might definitely need additional financing for its operations.
Above all, for a long time ERHC had been “under investigation by the SEC, the DOJ and a U.S. Senate Subcommittee, and the results of these investigations could have a material adverse effect on its business, prospects, operations, financial condition and cash flow”.
