Replies to post #253433 on Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Read more carefully.

NO! Dont mislead people.
The most LPC 3 can add to the share count is 4.99% of 995M.

That is a fact.

LPC cannot *HOLD* more than 4.99% of 995M at any any single point in time. Since they churn the shares as they get them, they do not *HOLD* many shares at all, never anywhere close to 5%.


For the sake of argument, let's say the share price is .20 for some unspecified period of time in which Nasrat wants the full $40M. He gives LPC ~5M shares and they give him ~$1M. They sell those shares quickly and have the capital ready for the next time. Now repeat the process 40 times. (LPC never gives $40M, they give the same $1M forty times.) In this example, including the 11M free shares, the full $40M deal would require more than 210M shares (>20% of 995M). That is exactly the reason for the Fiday night massacre. Nasrat had to prove to LPC that he had $40M worth of shares to sell them, at current share price.


THOSE are facts. >20% vs. 4.99% is a big difference. Be sure to understand the dilution.

Our sales of shares of Common Stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 4.99% of the then outstanding shares of Common Stock.

[John_Langston]

The most LPC 3 can add to the share count is 4.99% of 995M.

LOL that's a good one.