ERG - Fact or Fiction (Volume 5)

This list tells you that the auditors would have considered a broad range of issues in the determination of going concern issue. Please do not presume that a decision made by the auditors would have been a knee jerk reaction. Any reference to a going concern issue is a serious matter. Wake up…the facts are in front of shareholders.

It is very clear that ERG failed to satisfy some of the tests listed above, it is even more peculiar that investors continue to enter into the market without actually understanding the facts and the consequences of purchasing shares in ERG.

In relation to the cash burn rate…that is perhaps a question all shareholders should ask of the company. To date, ERG has been very silent of this matter, however if actions are a reflections of the desperate cash burn factor ERG faces then please consider the conversion of Motorola convertible notes and the issue of shares associated with the payment of interest on the public convertible note. Actions speak loader than words. The word “DILUTION” means that there will be more shares on issue. If this is the case, then expect some pressure on the stock.

It is very obvious to the market that ERG has a cash flow problem. If you want to find out what the cash burn rate, please take the AGM as a opportunity to ask the management and board he question. They will no doubt be very willing to keep the market informed of the facts.