Replies to post #254984 on Elite Pharmaceuticals Inc (ELTP)

[mjohnh]

They could be holding some .....or all......my guess.....they actually look at the market.....they look at the bid and ask.......they look at volume.........they have done DD.....so, they can hold or they can sell or they can do both........but, they will not let their holdings exceed a certain % of their total....no way to know what that is....but, they are intelligent investors...

[WeeZuhl]

This is not true.

READ THE FILING Date of First Sale: 2017-05-01
That was Monday May 1, 2017
There have been 8 trading days since the Date of First Sale: 2017-05-01 and we are still moving UP! UP! UP!
That is less than 5 mil shares so NO BIG DEAL considering they are using the money to complete SEQUESTOX trials for resubmission or for the next ANDA or for their other abuse deterrent pipeline drugs!

Clearly, they are including the free shares as "sales," and the "first sale" on May 1 represents the initial give away of 5,540,550 free shares. So, what you say is a mistatement. It was not less than 5 million shares, and no money was deposited in Elite treasury to be used for trials or pipeline development.

13. Offering and Sales Amounts
Total Offering Amount----------$ 41,600,000 USD
Total Amount Sold------------------$ 800,000 USD
Total Remaining to be Sold---$ 40,800,000 USD


Clarification of Response (if Necessary)
Amounts include common stock issued or issuable to Lincoln Park Capital as commitment and additional commitment shares under the purchase agreement.

5,540,550 seems like kind of a random number, eh? It's not random at all. It is based on $800,000 at a share price equal to the average of 3 lowest closing prices in the 10 trading days prior to May 1, 2017 (commensurate with the LPC III agreement).





.143 (4/17)
.145 (4/18)
.145 (4/19)
====
.14439 AVG


$800,000 / .14439 = 5,540,550 shares






On a positive note, I believe this means that the second give away of free shares will be based on that $800,000 number, and if the share price is higher then the shares will be fewer. For example, if SP is .50 at the time it is due, then only 1,600,000 shares would be required instead of 5,540,550.