Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

Note 19 - Subsequent Events in 10K

“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.”

Less than a week later, they entered into the asset purchase agreement to buy the building. The deal was closed after the 10K period, but could have been mentioned on the call. Instead, they spoke of the building acquisition, which funds from the loan were most likely used to seal the deal.