Replies to post #339841 on Elite Pharmaceuticals Inc (ELTP)

[IB_]

Kinda wonder what/if Nasrat's personal relationship with LPC might be ???????

IB_

[imanjen13]

There is nothing in the agreement that states that Lincoln Park will buy shares below market price. In addition, they are specifically prohibited from flipping or shorting the shares they acquire. If you are suggesting otherwise, you believe that they are violating the purchasing agreement.
What would motivate the owner of the majority of shares to undertake a strategy that would harm shareholders and his own vested interest?

[Je3232]

Thanks for the Information.

[WeeZuhl]

And, yes, you are correct, LPC III is definitely causing the share price to push down to historic lows.

I should be more clear. This doesn't mean that Nasrat has put any shares to market yet under LPC III. This downward grind could be just the 6 million "Commitment Shares" making their way to market. According to the paragraph below, Additional Commitment Shares are owed for each transaction.

(e) Issuance of Commitment Shares. In consideration for the Investor’s execution and delivery of this Agreement, the Company shall cause to be issued to the Investor a total of 5,975,857 shares of Common Stock (the “Initial Commitment Shares”) promptly following the execution of this Agreement and shall deliver to the Transfer Agent the Irrevocable Transfer Agent Instructions with respect to the issuance of such Initial Commitment Shares. The Company shall cause to be issued to the Investor up to 5,975,857 shares of Common Stock (the “Additional Commitment Shares” and, collectively with the Initial Commitment Shares, the “Commitment Shares”), as follows: in connection with each purchase of Purchase Shares hereunder, the Company shall issue to the Investor a number of shares of Common Stock equal to the product of (i) 5,975,857 and (y) the Purchase Amount Fraction. The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is the Purchase Amount purchased by the Investor with respect to such purchase of Purchase Shares and the denominator of which is Twenty-Five Million Dollars ($25,000,000). The Additional Commitment Shares shall be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction. For the avoidance of doubt, (1) all of the Initial Commitment Shares shall be fully earned as of the date of this Agreement, whether or not the Commencement shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any subsequent termination of this Agreement and (2) the Additional Commitment Shares shall be fully earned as of the date of their issuance pursuant to this Agreement, irrespective of any subsequent termination of this Agreement.

[The ELTP King]

And yet 77% of shareholders voted in favor of the increase in authorized shares when I specifically warned them MULTIPLE times to vote "NO" or "ABSTAIN".

And, yes, you are correct, LPC III is definitely causing the share price to push down to historic lows.