Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Fact check: The minimum allowed is .03 with the new LPC deal (before it was .10); if the share price is 6 cents, shares are sold at 6 cents. 8 cents, 8 cents and so on.

More incorrect fact checking. If the share price is 6 cents, then Elite is selling the shares to LPC for 5.82 cents. If the share price is 8 cents, then Elite is selling them for 7.76 cents. Also, there are additional commitment shares due with every purchase, beyond the 5.97M initial commitment shares that have already been delivered to initiate the agreement. LPC services are not free.



https://sec.report/Document/0001213900-20-017103/

(ii) “Purchase Price” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, ninety-seven percent (97%) of the lower of: (i) the lowest Sale Price on the Purchase Date for such Regular Purchase and (ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date for such Regular Purchase (in each case, to be appropriately proportionately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

In consideration for the Investor’s execution and delivery of this Agreement, the Company shall cause to be issued to the Investor a total of 5,975,857 shares of Common Stock (the “Initial Commitment Shares”) promptly following the execution of this Agreement and shall deliver to the Transfer Agent the Irrevocable Transfer Agent Instructions with respect to the issuance of such Initial Commitment Shares. The Company shall cause to be issued to the Investor up to 5,975,857 shares of Common Stock (the “Additional Commitment Shares” and, collectively with the Initial Commitment Shares, the “Commitment Shares”), as follows: in connection with each purchase of Purchase Shares hereunder, the Company shall issue to the Investor a number of shares of Common Stock equal to the product of (i) 5,975,857 and (y) the Purchase Amount Fraction. The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is the Purchase Amount purchased by the Investor with respect to such purchase of Purchase Shares and the denominator of which is Twenty-Five Million Dollars ($25,000,000).