Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

rr2003...

To say Elite will fail and Nasrat will come out with a nice retirement is BS of the highest order and clearly absent knowledge about preferred shares. So let me repeat once again...

Since preferred shares benefit from being paid off in the event of Bankruptcy and common shares are NOT, it should give comfort to Elite investors that Nasrat wants to convert. Further, since preferred shares are locked in at a specific price, they do not gain from the rise in the share price until such time as they are converted. If, however, the shares remain below the strike price, there is a loss that allows for no adjustment. So, there is no adjusting the preferred price down. Not now, not ever. That would be a criminal offense the SEC would take exception to and the FBI would investigate.