Someone is getting out this morning. I love the peace of mind of knowing that anytime large blocks are being offered it is not dilution and it has to be a retail investor getting out. We know that because ELTP doesn't need any money, they are making enough on their own! That is a very rare situation on OTC.
On X some traders are posting about getting in an out of ELTP as it goes up over and over. They guys are very happy to make 20 to 30% with each sell. Sure they are missing most of the run and paying higher taxes, but it is a legitimate strategy for a retail investor who is making a living by day trading and thus don't want to lock up any investments for long-term profits. I suspect the half a million being offered is someone trading like that who bought in the 13s recently and would be happy to move up a point or point and a half.
Reality is that ELTP is between news so I am not sure how quickly those shares are going to move at the offered price of 0.1440. We might get news of an early approval of the antimetabolite ANDA this month. Recall that Nasrat said FDA is very interested in that because that product because of a shortage and that we may get an approval before the February PDUFA date. It is not a big market, but a PR does put the company back in front of new investors.
I think the only other surprise news, that we are aware of, that could drop is the possibility of Dexcel launching Elite's product in Israel. As background for new investors Dexcel wants to do this but has to get approval from the government and that is a long, complicated process that may or may not be successful. Elite has been providing Dexcel with test product and answering questions about this possibility for about 2 years now. I have kind of written that off given the ongoing war, but I suppose it could still happen and if it does it will just drop out of the sky out of nowhere. I think that because Nasrat has hinted at Elite sending Dexcel $50k to $100k of test product and he has reported that Elite is interacting with Dexcel on a somewhat regular basis when needed. Plus he noted that he wouldn't PR any deliveries of products to foreign countries until they are 'materially relevant'...i.e. big contract. So if we ever get a PR about the Dexcel deal being finalized I expect it will be a big deal to the company and our share price.
