Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

how the Lincoln park deal works?

First, LPC gets millions of shares just to enter the agreement. When Nasrat needs money for whatever he informs LPC of how many shares he wants them to buy. There are limits, as per the agreement, as to how many shares and how frequently he can do it. I don't know the above details of LPC III off the top of my head.

The purchase price is calculated such that LPC gets a discount on every share, and they immediately/quickly sell those shares on the open market. They are not long term investors, they are the mechanism that Nasrat uses to turn shares into cash.

We hadn't seen much LPC dilution because LPC II had a 10 cent floor. Once Nasrat caused the share price to permanently drop below 10, he could no longer sell shares to LPC. He took care of that problem in LPC III with a 3 cent floor, which means that Nasrat can keep putting shares to market until the share price is below 3 cents.

LPC makes money no matter what happens to Elite. Nasrat is making money off the Adderall ANDA's. Elite shares will likely be in the 5 cent range this week or next. And, yes, you are correct, LPC III is definitely causing the share price to push down to historic lows.