Replies to post #223988 on Elite Pharmaceuticals Inc (ELTP)

[rocioyogi]

You to best Weezy interesting concept may be very possible

[lasers]

Jerry Treppel

Secured Convertible Note due 2016 (this “Note”) issued by Elite Pharmaceuticals, Inc. and Elite Laboratories, Inc. to Jerry Treppel on or about November 21, 2013 in the original principal amount of $600,000 as amended.

AMENDMENT
TO THE NOVEMBER 21, 2013 SECURED CONVERTIBLE NOTE
TO JERRY TREPPEL
DUE NOVEMBER 21, 2016 IN THE PRINCIPAL AMOUNT OF $600,000

https://www.sec.gov/Archives/edgar/data/1053369/000114420414006951/v367663_ex10-2.htm

[WeeZuhl]

Treppel converted his Preferred already.

As others have noted, with this conversion, we are running tight up against total authorized shares (have to leave enough of a cushion for Treppel to convert his Preferred, too).

Treppel held 4.242 Series I Preferred and all were converted on 2/17/14. So with Nasrat's recent conversion, there are no more remaining Series I Preferred.




http://www.edgarexplorer.com/EFX_dll/EdgarPro.dll?FetchFilingConvPDF1?SessionID=0iMSetaKF8UFi-9&ID=9768594

http://www.edgarexplorer.com/EFX_dll/EdgarPro.dll?FetchFilingConvPDF1?SessionID=0iMSetaKF8UFi-9&ID=10203520

[namtae]

Reasonable thought but

Nasrat could agree to accept .10/share and take an interest-bearing note for $16+ million dollars

Why would Elite (other than for Nasrats self dealing) want to assume a $16m debt (or whatever it would be), which destroys their balance sheet, destroys their shareholder equity (if remotely considering nasdaq listing) and adds an unnecessary financial burden?

Perhaps a simple, more economical solution is increasing the authorized to make room for any LPC additional funding (if there is one. its gonna have to happen soon enough anyway

Keeps the balance sheet clean, no debt servicing and strengthens shareholder equity...

More disturbing is how much Nasrat is soaking Elite for his Mikah company if your scenario plays out.. its very possible but I wouldnt want to see it if I was an Elite shareholder