Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

So, when I read the quote below, I can only say thank you for having made my point. That is - a reverse split by itself does not have a corresponding reduction in the authorized shares. The example makes clear and confirms what has been said...A reduction in both outstanding and authorized shares is only possible with a shareholder vote to approve the reduction of BOTH.

So, not to marginalize, mitigate, minimize, or misconstrue the quote, here is it in its entirety as provided. Please note the words that clearly and convincingly confirm the veracity of my argument.

I for one would like to be the first to offer my congratulations for winning this argument with no one. I said from the start that Chesapeake reducing outstanding and authorized shares required two votes from shareholders. I am shocked that it seems so unfamiliar to so many investors that a company can reduce their authorized shares if they choose to. It is commonplace for a company undergoing a reverse split to take the steps necessary to reduce authorized shares at the same time they reduce outstanding. It is so common, in fact, that it barely deserve any discussion at all, unless of course, one is deliberately trying to distract from the relevant, company-specific discussion at hand.


As I said, from the start:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=158521343

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.

And further congrats...

Any quotes attributed to links I offer are carefully thought and, if truncated, are done to aid in reducing the unnecessary verbiage.