Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

Elite needs cash to sustain operations. Regardless of where the pps is at, the new LPC agreement/amendment will be used to sell shares. Elite needs cash to keep the lights on. They have less than a million in cash on hand now (maybe $600K). Since their burn rate last quarter was 1.1M, there must be something else (e.g., ANDA asset sale) for Elite to push out the shareholder vote unless we see a situation like this play out:
- Elite pushes out the shareholder vote beyond what can be sustained with current cash on hand
- CEO comes in to “save” the company and gets significant benefit since company is now backed into a corner and maybe even puts IP in his name as backup in case company can’t pay bills and goes bankrupt.
- Or we just have incompetence at play here and a lack of understanding the requirements to setup the shareholder vite and the meeting was pushed back 120 days (another likely scenario) for regulatory purposes.