Elite Pharmaceuticals Inc (ELTP)

[kayak_wench]

Good grief! They want a 5 year lease because they see themselves needing the extra space for the long-term. The reason the question was stupid because 'bubba' asked why would Elite sign a 5 year lease agreement if they can see selling the company in 2 years. If the lease was only for 2 years it would make the company less attractive to a prospective buyer because the new owner would have to figure out how to solve the space problem again and that space is a sweet solution for Elite (sweet = economic and convenient) . In most (maybe all...?) states the new owner has to honor the previous owners lease agreements made with the original owner or management, unless the lease agreement specifically states that the lease will terminate in such case. In Elite's case this is a benefit. The new owner will need the space just like Elite. So Elite having the space wrapped up for 5 years will facilitate a sale.