Replies to post #339369 on Elite Pharmaceuticals Inc (ELTP)

[The ELTP King]

I was the one who pointed out that in this 10-K the poison pill info was also listed in the "Subsequent Events" portion of the 10-K in addition to where they normally list it.

So what are you trying to say?

The poison pill is no longer any good?

Q7: Why was the poison pill mentioned in the 2020 Annual Report and has not been mentioned in any others?

A7: It was mentioned in this annual report because it offers a clear explanation that shows neither Nasrat nor LPC could leverage a hostile takeover. And, it was mentioned in the 2014 Annual Report. And, if read it reveals that there is a provision for shareholders prior to October 2013 who would be able to receive shares at a price of $2.10 for each share they hold.

[The ELTP King]

No, the valuation was based on a fully-diluted basis at the time, NOT the current outstanding shares at the time.


"We engaged the prominent consulting firm in the field of company and stock price valuation. These are consultants who are viewed as authorities on the subject. They have written the leading textbooks on the subject and they worked regularly with the investment community.

They conducted a thorough study with lengthy interviews and due diligence. And then they finally issued a 30 page report which confirmed our opinion. The report shows a conservative valuation, a most likely valuation and a best case valuation. And I can tell you the conservative valuation was $0.40, most likely was $2.10 and the best case valuation was $2.75, all of these on a fully diluted basis.

So that’s $0.40, $2.10 and $2.75 and that’s not future value, that’s the present value today. Future value will be more. Now these valuations are based on the Elite executing its’ strategic plan and we’re on schedule as you can tell by our financials."

So, let’s look at the real influence of dilution and begin by considering the old valuation mid-point of $2.10 was based on the issued shares of 494,811,263 (in November 2013)

[The ELTP King]

Incorrect.

The valuation was based on Elite's ART technology, as Nasrat stated on the CC in 2013.

Nasrat responding to the valuation of $2.10:

QUOTE: "It is because of our ART technology."

Now the ART technology is just a small bonus in the valuation as it never came to fruition.......as of right now.

However, we also didn't have the two Adderall products at the time in addition to Generic Concerta in the pipeline.

So nobody has a CLUE what the ACTUAL valuation is.

That means, based on the current dilution including Series J, holding steady the old valuation midpoint of $2.10, Elite’s shares would be valued at $1.06.

[WeeZuhl]

Q1: What does the noise of today have to do with Elite’s future?
A1: Nothing. What follows is meant to help enlighten investors.

Since nothing in the entire dissertation addresses anything I've said over the past 2 days, I'm not sure what this Q&A is meant to address (or when). It's not any of the points I've brought up. (Shareholder Rights Agreement of 2013?? Really????) But please, don't hesitate to eventually address some of this stuff. There is still plenty more to talk about, and such a milquetoast response was a real disappointment, tbh. A more spirited discussion would be helpful for all.


Now let's work and try to recover something instructive from this gross verbosity. Ah, yes, here's something:

Q2: What was the improvement of revenues YOY?
A2: The move was from $7.5 M to $18 M.

ELTP BOARD POLL QUESTION
Annual revenue in FY2020 was 18M, but what should it have been?

Reply with your response. What if Nasrat had commercialized each of the opioid ANDA's as they were approved? What if all 5 opioids had full year sales?

Percocet... approved 7/18... $500M... 16 competitors
Norco... approved 11/18... $447M... 11 competitors
Tyl w codeine...approved 9/19... $45M... 8 competitors
Methadone... approved 8/18... $30M... 10 competitors
hydromorphone... approved 1/12... $30M... 8 competitors

*Note: annual sales numbers are from Elite's PR. # of competitors is current as of July 2020.

**Bonus points: what was total development cost, in millions of dollars, of the 4 opioid ANDA's that were approved in 2018-2019?

[ocbadger]

N2K Thanks, as always, for your clarifying perspective on the big picture here in a concise, straight-foward, factual manner!!!

[NASDAQ2020]

Very informative post as usual. More post like this would encourage me to renew my I-Hub membership.

ELTP

[dr_lowenstein]

That matters because there has been a consistent and concerted effort to keep the p/s under ten cents to prevent Elite from accessing the capital necessary to fund the business and not incur debt. T

where is that effort coming from? There is no evidence of any concerted effort to keep pps low, and there is no rational explanation of the motives to do so