Announced 10 minutes before the closing bell on Monday, the new symbol for ERHC Energy is ERHE, and the name of the company is now officially ERHC Energy.
The name change reflects the fact that the company has not done environmental remediation work in many years, and is now strictly in the energy business, CEO Ali Memon said at the company's shareholder meeting on Feb. 4, where ther name change was near-unanimously adopted.
The name and symbol change could prove to be a problem for short sellers, most of whom were probably caught by the short shares at the end of trading. When CUSIP numbers are changed, short sellers must present their certificates to the stock transfer agent to be issued new shares; that's impossible when shares are held in "naked short" positions as a result of having been sold and never physically delivered because they never existed.
The symbol change was heralded in a Business Wire press release that came out just before the close of business Monday:
ERHC Energy Inc. New Name and New Symbol Effective Feb. 15, 2005
February 14, 2005 15:50:00 (ET)
HOUSTON, Feb 14, 2005 (BUSINESS WIRE) -- Effective the opening of business Feb. 15, 2005, Environmental Remediation Holding Corporation (ERHC, Trade) has changed its name to "ERHC Energy Inc." and will trade on the Over the Counter Bulletin Board under the symbol "ERHE."
It will now use the CUSIP number 26884J 10 4.
SOURCE: Environmental Remediation Holding Corporation
ERHC, Houston
John Coleman, 713-626-4700
For the time being, this blog will merely duplicate the old one, located at http://erhc.blogspot.com.
A new blog that - for the time being - will be only slightly different from this one has been created for the new symbol, at http://erhe.blogspot.com.
4 comments:
When any company changes name and change its CUSIP the NASDAQ makes you change your stock symbol. They had no choice.
Before blasting a company and management that has never done anything to mislead shareholders, you might want to ensure your tirade is directed at the right party.
They said they were not going to do change their symbol. Was that misleading? Other than that, I don't think it's a problem. I suspect volume might slow quitye a bit as new investors look for the new symbol, though.
Losing patience here. I dumped and will get back in when it goes back down below .4
Joe, funny that you seem to blast the company so much, especially since you did not have the whole story. The 'Rest of the Story' is that NASDAQ changed the symbol, not ERHC. So before you go and blast the company, do us all a favor and get the facts first.
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