Elite Pharmaceuticals Inc (ELTP)

[namtae]

Not quite accurate

Elite decided when they needed LPC money and would provide shares to LPC that they had to sell immediately, with that money being transferred to Elite as the means to fund the company.

Elite would first give notice to LPC of a draw down amount.

LPC would then go to market over the course of perhaps several days and begin liquidating shares. (remember, LPC was granted committment or inducement shares) This is typical

After the liquidation, which in turn drives the share price down, LPC would transfer the requested proceeds to Elite. Elite then issues LPC shares (at the current, lower price)

This is how LPC makes its money.. selling in the market at higher prices and buying back from Elite at forced lower prices