Elite Pharmaceuticals Inc (ELTP)

[imtheking]

BREAKDOWN
So paying the 10.6 mil in debt off with 105 preferred shares * $100,000 a share / .07 basis given is 150,000,000 shares to pay off the debt and give the debtor voting rights. Which looks like companies they like having in interest in the business anyway, and this was expected per their early execution option.

That leaves 395 preferred shares at $100,000 share / .07 unless other wise specified. That's just over 550 mil shares. Which is close (but not quite) half of the company if diluted.

2 options I see.

1. Sell half the company to a strategic partner while maintaining control.

2. Dilute the shares to raise money for R&D because they are not turning enough of a profit to finish development.