Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

LMAO. Context matters.

It all has to do with Nasrat's Series J conversion, in which NONE of your forthcoming examples will have.

Again, I point you to Exhibit A:

Exhibit A:

If Nasrat wanted to do a reverse split to get to the Nasdaq he would have NEVER held a vote to increase the authorized shares because it would be completely pointless.

Why?

Because he would just do a reverse split first and then Elite would have TONS of shares available for his conversion of the Series J, completely eliminating the need for an increase in authorized shares.

Therefore, a reverse split is never going to happen.

Context does matter. First, the authorized share increase had nothing to do with Series J conversion. There was no need to convert those Preferred shares now or ever. There were interest payments coming due, but Nasrat could have dealt with that with a simple letter, exactly like he did for the alleged ratchet provision. Whatever the stated reasons, the only true reason why Elite had to increase shares immediately is because of LPC III. Without available shares, no LPC III. Without LPC III, no access to capital. That was the only real urgency that required the immediate authorized increase, not Series J conversion.

Second, nobody from Elite ever said that if shares are increased then an RS would not be needed. Nasrat has discussed RS on multiple occasions, saying the company would only do it from a position of strength. It would have been a disaster to do before there was real revenue, but it makes perfect sense if the company is able to steadily increase earnings. What would have been impossible in 2019 becomes very reasonable in 2021.

Finally, when did something being pointless ever stop Nasrat? Remember how excited everyone was when Nasrat declared there would be one ANDA filed every quarter? Those are all gone now, sold off for pennies on the dollar. Pointless. Remember SequestOx, Nasrat spent $50M to develop this and then forfeited the game with 2 minutes left in the 4th quarter. Pointless. I disagree that a reverse split would be pointless, but even if it was, it wouldn't stop Nasrat from doing it.

Investors who believe that ELTP's recent increase in authorized shares will prevent an eventual reverse split are just fooling themselves. It's definitely going to happen. The only questions are when and what ratio. IMO, sooner is better. What would this company look like with $10M in earnings and 100M authorized shares? Those are both reasonable, objective goals that are achievable in the 2021-22 time frame. Or, we can just keep doing what we're doing, which seems kind of pointless.