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welcome back!
I totally agree. I liked what happened to some degree, but at the same time I think that it wasn't the right move for ELTP. It would be completely different if they were a well established company instead of a company trading on the OTC. The difference being is the pps is completely controlled by traders. Treppel's reaction during the CC had a negative impact to the pps because of the stature of the company. Traders saw it as a weakness and sold. It could have been completely different if ELTP had a better history. I think Treppel took a chance on the emotion and was wrong on how people would take it. Which is why we haven't seen that again.
Most of us were not thrilled by the conference call last summer. The conference calls since then have been much better. In retrospect my opinion was that it showed that Treppel cares deeply about Elite's future. It was clearly not the proper way to handle the situation, but his passion and frustration was clear. I believe it was a mistake and since it hasn't happened again, I think that we can chalk it up to a human moment and a lesson learned.
I guess the real question is do you really think that number of shares you claim have been sold is correct? Please provide a link and explain what you think has happened. If you do, I'll explain what the link means.
Since evaluating the worth of a private company is very difficult I doubt anyone can provide an accurate value for them. However, since ELTP has invested in this company, and they have recently released yet another product to the market. Why wouldn't the value of the company increase? Thus increasing the value of ELTP? How could the release of a new product result in a decrease in company value?
ELTP has executed a great plan for the past 3 years. First ELTP hires Treppel as CEO. Then Treppel lays out the future for ELTP. ELTP is using generic drug income to create a solid business plan for ELTP. ELTP can now use this income to fund ELTP's phase III trials for ELI-216. We will soon see the incremental growth when ELTP releases their 10k and then discuss's ELTP's future during the ELTP Conference Call on July 3!
I agree. ELTP will likely release the 10k on Friday. Although ELTP might release the 10k tomorrow. If ELTP releases tomorrow it is likely that the ELTP 10k will be released after trading hours. Either way definitely looking forward to the release of the ELTP financials for the year!
Shaping up to be a good week for ELTP investors. ELTP will Release their 10k in the next few days. This should show continued growth for ELTP. ELTP has also scheduled a conference call to discuss the past year at ELTP.
Definitely looking forward to the release of the ELTP 10k and the ELTP CC. Even though I'm on vacation the day of the ELTP CC I'll deifintly make sure I wake up early to hear the accomplishments for ELTP in the past year. Can't wait! Very exciting times for ELTP!!
ELTP Buzz cloud update:
ELTP has now entered the 6 hr Buzz Cloud.
http://investorshub.advfn.com/boards/tcloud2.aspx?i=6
ELTP is still in the 3hr Buzz cloud
http://investorshub.advfn.com/boards/tcloud2.aspx?i=3
ELTP is also still in the 1 hr Buzz Cloud/
http://investorshub.advfn.com/boards/tcloud2.aspx?i=1
With any luck the ELTP board can have a lively discussion about the future of ELTP. This could keep ELTP in the buzz cloud for a while longer. I'm defintely excited about the future of ELTP
You might be right, but what else are we going to do until then?
Any thoughts then why it is in the morning this time?
NORTHVALE, N.J., Jun 27, 2012 (GlobeNewswire via COMTEX) -- Elite Pharmaceuticals, Inc. ELTP +7.25% , a specialty pharmaceutical company dedicated to developing and commercializing oral sustained and controlled release product formulations and generics with high barriers to entry, announced today the Company will host a conference call on Tuesday, July 3, 2012 at 10:00 AM EDT to review fourth quarter and year-end 2012 results of operations and provide an update on recent business developments. Company executives will also conduct a question and answer session following their remarks.
I guess I'm not sure about the actual times, but I was pretty sure that they were at least in the afternoon. Therefore, unlikely to have a big impact one way or the other on trading. This is happening in the morning, which I'm hoping is a good sign. Although they might just want to end early to start their holiday sooner.
Yes, I'm very intrigued about it taking place during the trading day. I don't recall that happening before. Perhaps they are expecting some positive discussions?
Elite Pharmaceuticals, Inc. Announces Fourth Quarter and Fiscal Year Ending March 31st, 2012 Investor Conference Call on Tuesday, July 3, 2012
NORTHVALE, N.J., Jun 27, 2012 (GlobeNewswire via COMTEX) -- Elite Pharmaceuticals, Inc. ELTP +7.25% , a specialty pharmaceutical company dedicated to developing and commercializing oral sustained and controlled release product formulations and generics with high barriers to entry, announced today the Company will host a conference call on Tuesday, July 3, 2012 at 10:00 AM EDT to review fourth quarter and year-end 2012 results of operations and provide an update on recent business developments. Company executives will also conduct a question and answer session following their remarks.
Slow night. Everyone must have what they need. Time for our 10k, and hopefully a move up for the pps!
The only way out is for Elite to show continuous improvement in their financials. Steady growth and profitability is required before the traders are overtaken by investors. The umpcoming 10k is the building block for the future. Elite may not have been profitable but we should see growth from the last 10Q. Then in a couple of months we'll see the Q1 10Q, which should continue the growth. This will build confidence in investors.
People need to get out of the mindset that the pps should shoot straight up. Patience is required as the company builds it product base and grows. Good things are happening here, it just requires time before they are quantifiable in the bottom line of the company.
That is why it is a shame it didn't fill this morning. Then we could have that bizarre psychological barrier eliminated and we could move on.
Why? What statements from the company?
Please explain how Elite's management is responsible for the day to day changes in the pps?
I haven't done a lot of research into Epic's worth. I know others on the board have. I do know that the partners that Elite and Epic have hold many connections between themselves. They understand that they can work together to leverage each other's abilities. This allows them to compete in the Pharma industry, which is so heavily dominated by a few large companies.
Keep in mind that this agreement was made 3 years ago, which was pretty much the low point of the company's history. Epic had the leverage to get the better end of the deal. At the time Elite had no products and their operating losses were huge (See included chart). They had also just fought off a hostile takeover from a hedgefund (Trellus). Elite needed help and Epic stepped in. The alliance created has strenghtened Elite to the point they now have 4 total products launched with more on the way. Epic and Elite are very intertwined, which means that Epic benefits from Elite's success and isn't simply using them as a share generator to sell on the open market.
Well, it is a long an complicated document. I suggest you read through it. They also aren't giving the shares away in this case. They are giving warrants, which allows them to purchase shares at a discount, which is another way for Elite to raise the cash needed for their product development. Elite will also get 15% of the profit from the drugs developed by Epic at Elite's facility. So Elite gets a quick injection of cash to solve immediate issues and long term profits from these products down the road.
Remember the wave of Form 4s that came out a few weeks ago? They were directly related to milestones being reached in the agreement.
Form 4 Example
From the agreement
With respect to each Identified IR Product and Additional IR Product developed by Epic at the Facility, (i) the Registrant will issue and deliver to the Purchaser a seven year warrant to purchase up to 4,000,000 shares of Common Stock, at an exercise price of US$0.0625, following the receipt by the Registrant from Epic of each written notice of Epic’s receipt of an acknowledgement from the FDA that the FDA accepted for filing an ANDA for such Identified IR Products and/or Additional IR Products, up to a maximum of four such warrants for the right to purchase up to an aggregate of 16,000,000 shares of Common Stock (such warrants, together with the CR Related Warrants, the “Milestone Warrants”),
I've recently had some questions in regards to the Elite - Epic Alliance so I started reading through the documents again to re-familiarize myself with the agreement. This is nothing new, but it might be helpful for those new to the board.
March 23, 2009 Elite announces Alliance with Epic
Link to PR - http://www.elitepharma.com/investor_relations.asp?goto=305
Link to 8k - http://sec.gov/Archives/edgar/data/1053369/000093041309001530/c56987_8k.htm
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
On March 18, 2009, Elite Pharmaceuticals, Inc., a Delaware corporation (the “Registrant”), entered into a Strategic Alliance Agreement (the “Alliance Agreement”) with Epic Pharma, LLC, a Delaware limited liability company (“Epic”), and Epic Investments, LLC, a Delaware limited liability company and wholly-owned subsidiary of Epic (the “Purchaser”), pursuant to which the Registrant will commence a strategic relationship with Epic, a pharmaceutical company that operates a business synergistic to that of the Registrant in the research and development, manufacturing, sales and marketing of oral immediate and controlled release drug products. Under the Alliance Agreement (i) at least eight additional generic drug products will be developed by Epic at the Registrant’s facility with the intent of filing abbreviated new drug applications for obtaining United States Food and Drug Administration (“FDA”) approval of such generic drugs, (ii) the Registrant will be entitled to 15% of the profits generated from the sales of such additional generic drug products upon approval by the FDA, and (iii) Epic and the Registrant will share with each other certain resources, technology and know-how in the development of drug products, which the Registrant believes will benefit the continued development of its current drug products. In order to provide the Registrant with the additional capital necessary for the product development and synergies presented by the strategic relationship with Epic, Epic will invest in the Registrant through the purchase by its wholly-owned subsidiary, the Purchaser, of $3.75 million of newly issued shares of the Registrant’s Series E Convertible Preferred Stock, par value US$0.01 per share (the “Series E Preferred Stock”), at a price of US$1,000 per share, each share convertible, at US$0.05 per share (the “Conversion Price”), into approximately 20,000 shares of its Common Stock, par value US$0.01 per share (the “Common Stock”), subject to certain adjustments. A copy of the Alliance Agreement is attached to this Form 8-K as Exhibit 10.1 and this summary of the terms of the Alliance Agreement is qualified in its entirety by reference to such Exhibit. Pursuant to the Alliance Agreement, Epic has agreed to guarantee the performance by the Purchaser of its obligations under the Alliance Agreement.
Use of Facility and Joint Development of Drug Products
On the Initial Closing Date, Epic and its employees and consultants will commence using a portion of the Registrant’s facility located at 165 Ludlow Avenue, Northvale, New Jersey (the “Facility”), for the purpose of developing new generic drug products, all at Epic’s sole cost and expense (other than Facility related expenses), for a period of at least three years (the “Initial Term”), unless sooner terminated or extended pursuant to the Alliance Agreement or by mutual agreement of the Registrant and Epic (the Initial Term, as shortened or extended, the “Term”). In addition to the use of the Facility, Epic will use the Registrant’s machinery, equipment, systems, instruments and tools residing at the Facility (collectively the “Personal Property”) in connection with its joint drug development project at the Facility. Epic will have the right, exercisable in its sole discretion, to extend the Initial Term for two periods of one year each by giving written notice to the Registrant of such extension within ninety days of the end of the Initial Term or any extension thereof. Any such extension will be on the same terms and conditions contained in the Alliance Agreement. The Registrant will be responsible for (and Epic will have no responsibility for) any maintenance, services, repairs and replacements in, to or of the Facility and the Personal Property, at the Registrant’s sole cost and expense, unless any such maintenance, service, repair or replacement is required as a result of the negligence or misconduct of Epic’s employees or representatives, in which case Epic will be responsible for the costs and expenses associated therewith.
During the Term, Epic will use and occupy a portion of the Facility and use the Personal Property for the purpose of developing (i) at least four control release products (the “Identified CR Products”) and (ii) at least four immediate release products (the “Identified IR Products”), the identity of each will be subject to the prior agreement between Epic and the Registrant. If, during the Term, Epic determines, in its reasonable business judgment, that the further or continuing development of any Identified CR Product and/or Identified IR Product is no longer commercially feasible, Epic may, upon written notice to the Registrant, eliminate from development under the Alliance Agreement such Identified CR Product and/or Identified IR Product, and replace such eliminated product with another control release or immediate release product, as applicable.
Epic will also use a portion of the Facility and use the Personal Property for the purpose of developing (x) additional control release products of Epic (the “Additional CR Products”), subject to the mutual agreement of Epic and the Registrant, and/or (y) additional immediate release products of Epic (the “Additional IR Products”), subject to the mutual agreement of the Registrant and Epic (each Identified CR Product, Identified IR Product, Additional CR Product and Additional IR Product, individually, a “Product,” and collectively, the “Products”). Under
--------------------------------------------------------------------------------
the Alliance Agreement, Epic may not eliminate an Identified CR Product or an Identified IR Product unless it replaces such Product with an Additional CR product or Additional IR Product, as the case may be. Subject to the mutual agreement of the parties as to additional consideration and other terms, Epic may use and occupy the Facility for the development of other products of Epic (in addition to the Products).
Well, for starters you could stay right on IHUB and find that the OS is only 267 million shares
http://ih.advfn.com/p.php?pid=squote&symbol=ELTP
or you could invest some time in doing the proper DD to learn what these transactions are and what they mean.
http://otcbb.com/asp/info_center.asp?symbol=ELTP
I don't care what other posters said about the deal. At the time it was the best that could be done, however, things have changed. I believe that after 30 days have passed we will see a financing deal that is much more beneficial to the stakeholders of ELTP.
Based on the filing Elite cannot find a new deal within 30 days. Therefore, asking why is pointless because they will not tell us what is coming in the future. We will need to wait for a PR.
I was never a huge fan of the socius deal. I looked at it as a necessary evil. It gave us money to put toward phase III, but diluted terribly. Cancelling that deal was a huge benefit for Elite, and their investors. The patent approval should allow for a deal that is much better for investors.
FYI - the commitment fee was not paid because Elite did not do the deal. That is straight forward.
I agree with you 100%
You said:
They did not deny the S1 because the company withdrew it when they learned they could not do the Socius deal as structured.
The Company believes that the withdrawal of the Registration Statement is consistent with the public interest and protection of investors, as contemplated by Rule 477.
umm, thanks for the google search on the s-1 form. Although I don't see the relevance. Of course it is standard legalese. It is an sec form. They all use the same language.
If the SEC denied the S-1 there would be documentation. There is none, and you cannot prove that there is. Nor can you prove that standard procedure from the SEC would not include documentation about the denial. That is because it doesn't work that way. Not matter how many times it is stated your theory is false, and will never be true. The SEC documents their transactions because the ambiguity of not doing so allows manipulation in stocks. Therefore they document everything.
And yet there is zero documentation to support your theory. When the SEC makes decisions they do so with documents that can be read publicly. Where is the document from the SEC that says the S-1 was faulty? There is none. The only documents available are from Elite. Nothing has been filed from the SEC to Elite indicating an action they need to take.
Here is an example.
http://www.sec.gov/Archives/edgar/data/1420924/000000000010072362/filename1.pdf
In this example there were issues with a 10Q filing. The SEC sent a list of the issues and filed the documentation so the public could read what the issues were. This is standard procedure for the SEC. If there was a problem with Elite's S-1 filing the SEC would have documented that problem and made it available to the public. These things are not kept secret.
Nope, I read that. Here is why I disagree.
quote]The Registration Statement has not been declared effective by the Commission, and no securities have been sold pursuant to the Registration Statement or the prospectus contained therein. The Company believes that the withdrawal of the Registration Statement is consistent with the public interest and protection of investors, as contemplated by Rule 477.
[/quote]
The Socius agreement was no longer in the best interest of Elite and their shareholders. The patent was the catalyst for the change. 6 months ago without the patent the Socius deal was the best available. Now with the patent the deal is not that great for stakeholders. Elite and the SEC recognized this, and the filings support it.
Yes.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76883378
I'm sure you are referring to this.
Quote:
The Company is withdrawing the Registration Statement because, after discussions with the Commission’s staff, it determined that the transactions as structured in the Securities Purchase Agreement could not be implemented. Accordingly, the Company will not be proceeding with the financing under the Securities Purchase Agreement.
http://sec.gov/Archives/edgar/data/1053369/000114420412035848/v316637_8k.htm
Which is supported by this
Quote:
The Registration Statement has not been declared effective by the Commission, and no securities have been sold pursuant to the Registration Statement or the prospectus contained therein. The Company believes that the withdrawal of the Registration Statement is consistent with the public interest and protection of investors, as contemplated by Rule 477.
http://sec.gov/Archives/edgar/data/1053369/000114420412035554/v316497_rw.htm
a.Except as provided in paragraph (b) of this section, any registration statement or any amendment or exhibit thereto may be withdrawn upon application if the Commission, finding such withdrawal consistent with the public interest and the protection of investors, consents thereto.
http://taft.law.uc.edu/CCL/33ActRls/rule477.html
So let me sum this up for you. Elite went to the SEC to file a withdrawl request. They then proved their case that this was not in the best interest of the company or shareholders. They needed SEC approval so they would qualify for Rule 155(c) safe harbor for abandoned public offerings, which they did. They are now free to find another investor which provides a better deal for the company and investors. It is all laid out for everyone to read. Proper DD would reveal that. Notice the links to verifiable sources?
I knew about Ashok Nigalye, but assumed that being in a C-level position he was there more for strategic guidance than day to day operations. I didn't realize that other Epic employees were onsite. Guess I'll need to catch up on my reading this weekend. Thanks.
I think Epic is actually making them as well, just using the facility
Why don't we see any future Epic drugs listed in the pipeline?
I'm sure you have several verifiable links to prove your theory. I know the board would enjoy seeing them.
I'm sure you are referring to this.
The Company is withdrawing the Registration Statement because, after discussions with the Commission’s staff, it determined that the transactions as structured in the Securities Purchase Agreement could not be implemented. Accordingly, the Company will not be proceeding with the financing under the Securities Purchase Agreement.
http://sec.gov/Archives/edgar/data/1053369/000114420412035848/v316637_8k.htm
The Registration Statement has not been declared effective by the Commission, and no securities have been sold pursuant to the Registration Statement or the prospectus contained therein. The Company believes that the withdrawal of the Registration Statement is consistent with the public interest and protection of investors, as contemplated by Rule 477.
http://sec.gov/Archives/edgar/data/1053369/000114420412035554/v316497_rw.htm
a.Except as provided in paragraph (b) of this section, any registration statement or any amendment or exhibit thereto may be withdrawn upon application if the Commission, finding such withdrawal consistent with the public interest and the protection of investors, consents thereto.
http://taft.law.uc.edu/CCL/33ActRls/rule477.html
I've never once seen anyone post that the bonds were not in default. I'd like to see that link.
Sorry, The SEC said no such thing. Nice try. Perhaps you should read through the Filings and the referenced rules from the Securities Act of 1933.
That does make sense, although it doesn't mean I have to like it.