ERHC Energy Inc., a publicly traded American company with oil and gas assets in Sub-Saharan Africa, has announced the extension of the expiration date of its previously announced rights offering to the close of work on Thursday, February 28, 2013 from the original expiration date of January 31.
"We want to be sure that all stockholders have sufficient opportunity to participate in the rights offering," said ERHC President and CEO, Mr. Peter Ntephe.
"We have received feedback suggesting that there may have been delays among some brokers or other nominees in delivering the rights materials to stockholders. Feedback from stockholders outside the U.S has also suggested that international postage to certain areas might have put back the receipt of rights material by stockholders in those areas. We acknowledge and thank all those who have exercised their rights already and trust they understand why this extension is necessary."
Those stockholders who hold shares in street name through a brokerage account, bank or other nominee may need to provide investment instructions to the relevant nominee not later than 5:00 p.m., Central time, on Monday, February 25, 2013. No offering materials will be received by those holding in street name, and such stockholders wishing to participate should promptly contact their broker, bank, or other nominee.
Under the terms of the rights offering, the Company has distributed, at no charge, to the holders of its common stock as of December 17, 2012, one non-transferable subscription right for every three shares of the Company's common stock then owned. Each subscription right entitles the holder to purchase one share of common stock at a purchase price of $0.075 per full share. No fractional shares will be issued.
The rights offering also includes an over-subscription privilege, which entitles a stockholder who exercises all of its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among holders exercising this over-subscription right.
Please review the Prospectus Supplement filed with the SEC on December 27, 2012 relating to the rights offering for a complete description of all of the terms of the rights offering. Other than the extension of the expiration date of the rights offering, all of the terms described in the Prospectus Supplement remain the same and apply during the extended period of the offering. The Company reserves the right to modify, postpone or cancel the rights offering at any time prior to the closing of the sale of the shares in the offering.