HOUSTON, Dec. 14, 2012 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced that the Company intends to launch a rights offering later this month. ERHC has set the close of business on December 17, 2012 at 5:00 p.m. central time, as the record date for its anticipated Rights Offering.
The Rights Offering will be made through the distribution on a pro rata basis to ERHC stockholders of record of non-transferable subscription rights to purchase shares of the Company's common stock. Stockholders will receive, at no charge, one subscription right for every three shares of common stock held of record at the Record Date.
Each subscription right (with the total number of subscription rights issuable to a holder rounded down to avoid the issuance of fractional rights) will entitle a shareholder to purchase one share of the Company's common stock at a subscription price equal to $0.075 per share. In addition, holders of subscription rights who fully exercise all of their subscription rights may also make a request to purchase additional shares of the Company's common stock that remain unsubscribed at the expiration of the Rights Offering, subject to the availability and pro rata allocation of shares among rights holders exercising such over-subscription right.The Company will offer up to 246,486,285 shares of its common stock in the Rights Offering, inclusive of the over-subscription privileges, representing approximately 33 percent of its current outstanding shares of common stock, if fully subscribed. The Company plans to apply capital raised in the Rights Offering to fund specific exploration and development activities pursuant to work programs governing its exploration acreage in the Republics of Chad and Kenya, as well as for general corporate purposes and working capital needs.