Replies to post #203596 on Elite Pharmaceuticals Inc (ELTP)

[rollin2nyte]

We shouldn't rule out the possibility that NH is posturing to increase a buyout offer. Whether or not uplisting to the NASDAQ makes sense does not affect it's impact to future negotiations. The threat of organic growth, including uplisting, will benefit ELTP shareholders despite how realistic that scenario is. It's obvious that Epic does not have the horsepower to extract as much profits as needed within the 3-5 year window. If you were to partner with Epic you'd think a product with a smaller revenue base would be the preferred kickoff. Then incur incremental profits off that to wiggle into a partnership with a large pharma. By introducing ELI-200 as the first offering seems a bit off to me with regards to maximizing profits. Something interesting is going on behind the scenes.

[Couch]

On this note, though I have not researched what the costs are in terms of getting to the Nasdaq - fair enough, certainly one of the positives in moving to the Nasdaq would be gaining access to institutional investors and a much less volatile investor base- so anyone telling me it matters naught whether Elite gets to the Nasdaq or not - well call me a reluctant critic in this moment.

[no2koolaid]

What Nasrat is playing, quite well I might add, is the scenario game...to whit...

Scenario planning may involve aspects of systems thinking, specifically the recognition that many factors may combine in complex ways to create sometime surprising futures (due to non-linear feedback loops). The method also allows the inclusion of factors that are difficult to formalize, such as novel insights about the future, deep shifts in values, unprecedented regulations or inventions. Systems thinking used in conjunction with scenario planning leads to plausible scenario story lines because the causal relationship between factors can be demonstrated. In these cases when scenario planning is integrated with a systems thinking approach to scenario development, it is sometimes referred to as dynamic scenarios.

The best use of a scenario planning approach is acting as if each potential scenario is independent, yet related through the options available. Therein lies the purpose behind Nasrat's discussing uplisting, partnerships, and the "if a big firm makes a great offer today we would take it..." This only enhances the negotiating power for Elite and it is nothing less than what we investors should expect. I would not pay 2 cents for a firm that had potential they only looked to give away. The complexities are what makes this game intriguing...Nasrat cannot refute the ability to uplist because that removes the options of going it alone (hough impossible given their lack of a complete value chain ad BP knows that), focusing on the Epic/PuraPharm partnership as the means to geographically target the commercialization of ELI200 (again, by virtue of the definition provided by Nasrat on the CC, a nice approach but a limited future), or seeking to partner/license the tech (a real possibility). So, when we add in a buyout we see that Nasrat has established four (4) different scenarios, all of which work from the basis of similar options...to a point. That point? When a decision must be made about the final steps to take.

I have said and believe that a buyout upon proof of concept is the preferred choice for big pharma from a cost perspective. However, if Elite decides to commit time, talent, and treasure to uplisting a buyout is NOT on the table for the immediate future (2-3 years). But let's be clear for those who see bigger dollars in their minds from this scenario...management greed, over estimation of their personal or company abilities, and an inability to recognize their responsibility to shareholders, have often led to failure when success seemed so apparent. I trust in management's judgment...to the point that, having played in the big leagues, I know egos sometimes override pragmatism.

[NASDAQ2020]

If this is true, and if Nasrat continues to assert that he intends to uplist to NASDAQ, then what does that say about his intentions with this company? Every indication, at this point at least, is that Nasrat plans to build the value of this company before he sells it. Those looking for a quick buyout are likely to be disappointed, and I truly hope they are. I cannot wait to uplist to NASDAQ.

Nasrat is a poker player.
Has to be able to show he is willing to go all the way to get BEST buyout price. GL