Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

A little research to make sure of the facts and here they are...

In a buyout, the purchaser is buying all of the common shares of stock for a price it believes to be the fair value of the company as a whole. As a result, it would generally be advisable either to value the company as if these shares were converted, or to force their conversion before the buyout.

Because it would be a buyout, the conversion would be triggered and the April 2020 conversion date is irrelevant. So, if Elite is made an offer right now it would trigger the Series J conversion and the good news is Elite has enough authorized shares available to cover Nasrat's Series J conversion, with about 1.4 million to spare.

FYI: As it relates to a vote for approval of a buyout, only the common shares available at the point of the offer are considered voting shares; which means Series J would not have a vote.

The question is whether Elite is at a point that an acquirer would be interested enough to pay what Elite (Nasrat) would want. I think not yet. Now, if they get the approval for Adderall ER and file another big ANDA...