Elite Pharmaceuticals Inc (ELTP)

[tangerine]

Sometimes you get this type of funding to show that you will be solvent for a long time. To show you have access to money if you need it.

If a prospective partner wanted to help launch Eli 154 or Eli 216, but thinks you are a risk because of limited current revenue, they may be hesitant as there would be increased risk.

Having 5 million in reserve, tells a partner that you are not a risk. It also tells your competitors that you are not going away any time soon. competitors can become partners too!!!

By having a 5m dollar insurance policy, a partner can feel comfortable that you will be around for the next few years without fear of losing their sizable investment.

Then you also don't have to sell Novel Labs which will continue to increase in value. Just good business being done here.

Just something I have been thinking about.