Elite Pharmaceuticals Inc (ELTP)

[Trend-Setter]

NOTE 19. SUBSEQUENT EVENTS

On April 2, 2022, the Company entered into a loan and security agreement with East West Bank, pursuant to which the Company was granted by the Bank a term loan of $12,000,000 for a duration of five years and an asset-based Revolving Line of Credit up to $2,000,000. The Company has received the proceeds of $11,959,880 out of the term loan net of applicable professional changes, and it will be used for general working capital purpose. In return for the term loan, the Company is required to meet certain financial terms and conditions.

On April 8, 2022, the Company entered into an Asset Purchase Agreement to purchase the building located at 135-137 Ludlow Avenue in Northvale NJ and is currently in escrow. The Company has leased the entire 35,000 square feet of floor space since 2014. This property is occupied by the Company’s Quality Assurance department, commercial manufacturing, packaging, and warehouse. The closing date is expected to take place in July 2022.

On June 27, 2022, the Company received notification from the US Food and Drug Administration (FDA) for the approval of the Company’s Abbreviated New Drug Application (ANDA) for a generic version of Sabril® (Vigabatrin USP) 500 mg powder for solution packet. Lannett Company, Inc. has an exclusive license to market and distribute the product in the U.S. and territories. Elite will exclusively manufacture and package the product for sale for an agreed-upon transfer price. The companies will share in product net profits.

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