DD Support Board and Research Team

[namtae]

Difficult read on the ELTP board

The company issued an 8K, after the close Friday (naturally)

The 8K provided for the CEO to exchange his appx 158m shares of common into a Series "J" cvt Pref. The Series "J" converts into that common at appx .15 but also carries full ratchet provisions

In addition, Elite issued the CEO 79m cashless warrants also with full ratchet provisions because it must have been a sunny day and the board was in a great mood

The issuance of the warrants has maxed out the authorized on a fully diluted basis. Elite will either increase authorized or reverse split as the great majority of funding received for the past several years has relied upon a Lincoln Park ELOC and the company is not cash flow positive

The anti-dilutive preferred and warrants carry potential derivative liability and dilution to all shareholders except, the CEO

Apparently the regular posters view this (as well as anything else) as great news.

https://www.sec.gov/Archives/edgar/data/1053369/000114420417023318/0001144204-17-023318-index.htm