Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

1. A R/S DOES NOT CHANGE THE AUTHORIZED SHARE COUNT ONLY THE OUTSTANDING SHARE COUNT.
(Did I type that loud enough?)

It's ha ha funny that some investors believe this stock is not going to reverse split in the next few years. It is oh my funny that the same investors do not understand that a company controls their share structure. If they wish to reduce the authorized shares at the same time they reduce outstanding shares in a reverse split, then they are welcome to do it (and many do!). A recent example off the top of my head is Chesapeake Energy, who did this exact thing in April 2020. Shareholders approved both reductions at the same time. There are a multitude of obvious reasons why companies would want to reduce both outstanding and authorized shares. It is a routine process, and no capital letters or superlative punctuation is needed to explain it or understand it.


Challenge to all investors: for every ONE example posted to this board of a public CEO who does non-arm's length deals with his own private company, I will post FIVE examples of companies who reduced both outstanding and authorized shares during a reverse split. Very simple. Good luck.