Replies to post #249227 on Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

The amount outstanding cannot exceed the amount authorized. Company charters often require a shareholder approval to increase share count, but not always. Same goes for reverse splits.

[conix]

ELTP's authorized share count is 1 Billion. They currently are 5 million shy of that number.

They could do one of two things.

One--increase the authorized shares to, for example, 1.5 Billion or 2 Billion

or, Two---do a reverse split in order to remain below the current 1 Billion shares limit.

[John_Langston]

Theoretically no, but when the share count gets up in the two or three billion range for these OTC junk stocks the PPS goes to no bid and they are forced to do a RS so they can keep selling shares.