Trellus/Elite
I think it's critical to understand the role Trellus plays in this. Here are some facts/DD. I'd really really appreciate others input here. The story is far from complete and I am very much an newbie to all of this.
9/15/2008 - Various Trellus companies, owned by Adam Usdan, acquires controlling interest (approx 50% of the voting shares)
in Elite by purchasing preferred shares for $400,000 (needs verification...not sure I read that right) that were convertible
to common stock. Stock closed at .09/share on 9/15/2008.
1/23/2009 - Trellus converts preferred stock to common stock.on January 23, 2009, after giving effect to the foregoing
conversions, there were 56,815,891 shares of Common Stock (exclusive of 100,000 shares held in treasury) issued and
outstanding, and the Trellus Entities owned, directly or indirectly, an aggregate of 23,969,652 shares of Common Stock,
including an aggregate of 1,969,652 shares of Common Stock held, directly or indirectly, prior to the conversions. Stock
closed at about .06/share on 1/23/2009. Trellus 400,000 inventment is now worth 1,440,000.
3/23/2009 - Elite enters into Strategic Alliance w/ Epic Pharma. As part of the agreement, Elite agrees to convert preferred
stock to common stock in an effort to loosen Trellus's hold on Elite. .......has agreed to use its best efforts to obtain the
agreement of the holders of the outstanding shares of Series B Preferred Stock, Series C Preferred Stock, and Series D
Preferred Stock (the “ Outstanding Preferred Stock ”) to convert all of their shares of Outstanding Preferred Stock into
Common Stock in accordance with the respective terms of the Outstanding Preferred Stock. The conversion of the outstanding
shares of Series B Preferred Stock and Series C Preferred Stock is a condition precedent to the Initial Closing. Assuming the
transactions contemplated by the Alliance Agreement, including, without limitation, the conversion of the outstanding shares
of Series B Preferred Stock and Series C Preferred Stock into Common Stock, the Trellus Entities will beneficially own less
than 50% of the Registrant’s voting securities. As a result of such conversions, the Registrant believes that it would be
unlikely that such Trellus Entities would be deemed to have the ability to influence the management and policies of the
Registrant......Trellus shares diluted big time from 50% to ?? (it's about 20% now)
4/3/2009 - Trellus begins selling shares in dribs and drabs and has done so up this day.
5/21/2009 - Elite Delists from AMEX
6/5/2009 - Elite closes Epic SA Deal
7/8/2009 - New CFO
9/21/2009 - New CEO and Chief Scientific Officer. The Chief Scientific Officer is also President and CEO of Epic.
What conclusions to draw from this? Did Adam Usdan like what he saw and attempted a takeover that Elite fought off and Epic
used their influence to replace management that allowed it to happen? Trellus owns about $1,100,000 in stock still so they
did OK but they continue to slowly sell off, taking profit bit by bit. This is a drag on the stock obviously. Why don't they
sell all of it? Maybe there just aren't enough buyers? Why doesn't Elite buy shares back? They probably don't have the capitol or perhaps Adam usdan is so pissed that he refuses to sell and is holding the stock hostage by dragging the price down. This also may explain the shorts. Trellus slow sell offs keep Elite in a trading range that keeps it from popping as long as the only investors are small timers like all of us. They "sell" it at 6 and wait for the drift down to "5" as Trellus sells and then they "buy" at the "5". Once Trellus is out of the way (everyone has their price right?) we'll be good to go as long as Elite keeps building the business.
