Elite Pharmaceuticals Inc (ELTP)

[Minding]

NASDAQ2020 and Couch,

Thanks both. I've been aware of their debt for a few years also.

You're right about the $3M, but didn't address the default issue. If it's been addressed in this forum, I missed it. There is also the Mikah Note, issued in August 2013 and convertible in August 2014, which was essentially conversion of debt into future dilution.

I get the sleight of hand to keep things going and like the new CEO, so please don't take this as anything but a quest to understand better.

How close to the line are they in terms of the default?

Though revenues were up terrifically this quarter, it wasn't enough to counter money-out (from .03 to .00 over three months and .00 to .02 over nine). I think they will continue to need to issue convertible notes because their capitalization isn't good.

All of this is why I've been trading in and out of ELTP over the past few years. I love the revenue increase and see their growth continuing. Certainly they'll pop with any FDA announcement. However the bottom line for me in terms of a long term hold is the issue of capital.

Kind regards,
George