Replies to post #252504 on Elite Pharmaceuticals Inc (ELTP)

[senderos]

The possible implications of any business strategy of a CEO exchanging his common shares for preferred shares is completely over my head. To be honest, someone here could spin this to sound like a disastrous idea, and someone else could spin it to sound like the best idea ever. I would never be able to tell which was more likely to be correct. I am guessing that most of us here are in my same boat.

All I can rely on at this point is my memory of that day some of us spent with NH at the annual meeting a couple of years ago. I am a pretty good judge of character, although the "inner soul" of business types is often difficult to read. However, after that meeting I felt as confident as I could feel about his integrity and his desire to see this company succeed for all.

In addition, yesterday's trading was encouraging, even though it occurred before we got the PR last evening. Monday will tell us a lot, I suspect, about how the market interprets this new business move by the CEO.

[ARbigguy1]

N2K or laser?? It say "J Preferred held by the holders are convertible as of the date of the Liquidation". Does this mean that the "J" shares cannot be converted until the company is sold??

[hyder]

Freeing up the shares is the requirement/need here, I rather opted for a RS of 1 for 2 or 3 and free up lot more shares than 158 million and whatever consequences come out of it will be the same for all shareholders including NH and other executives and we could have had 450 million or even 650 million shares freed up to do all the partnerships you can make. Am I thinking incorrectly? I think RS would have been a better option.

[lasers]

By freeing up 158 mil shares, the wind has been knocked out of the Shorts and $ELTP can now take its time to negotiate with increased strength for partnerships and licensing deals.

Third, on that point and the shares freed up…Does it really benefit a partnership? How so? A partner should be giving Elite money on some scale, not getting shares. Am I missing something?

$ELTP would NOT be giving shares to a Partner but rather selling shares to a Partner directly from their treasury, rather than a Partner buying open-market shares. This would do away with any LPC deal.

It is expected that the PPS will now start to rise immensely benefiting $ELTP's Mkt Cap.

Purchasing shares on the open market will now become expensive as IMO the PPS heads into the $range. All for the good as $ELTP plans to organically meet all Nasdaq listing requirements.

[Couch]

I agree that the main issue at the present is to have freed up shares for money to continue with R&D and trial expenses. This deal IMO does benefit the company and the shareholder above and beyond another LPC type deal or a RS at the present moment. IMO to do a RS now would be disastrous. To do, IMO, and I have always been clear on this matter - you only do a RS after you have inked a partnership and gotten your lead product approved (and possibly launched) and then do a RS.

Now in terms of those shares being used for a partnership.......those waters are likely more your territory - and I'd defer to your historical experience but I was thinking a partnership may entail some mix of cash, percentage of take on SequestOx and shares of Elite. Just a thought.

As far as the 20% increase/dividend Nasrat gets for this deal - my assumption is Nasrat gets compensated for decreasing the share count by 20%. Fair is fair but many may not see it this way.