Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

And what could any lending institution have used as collateral? There is no inventory to liquidate, no bank in their right mind would use a letter of credit, there certainly wasn't any cash flow for that type of corporate loan. Again, the LPC deal was the ONLY logical way this company could have raised the needed cash. Based on my expertise of managing corporate liquidity I cannot determine any other option that they had.

In all reality the LPC deal stinks in the near-term as the float increased to the nth degree, but what it really did (and I'm preaching to the choir as you already know) it gave Elite the POTENTIAL to pursue a real product pipeline for real long-term growth potential in very large markets.

The real question is was the LPC deal worth it? The FDA's response in October will tell us all. Is there going to be a near-term delay for an additional trial required (quite possible) or will there be some major obstacle currently being overlooked?