Replies to post #339843 on Elite Pharmaceuticals Inc (ELTP)

[jour_trader]

As Weezuhl explained it, this is exactly how this type of financing works. LPC gets the shares at a discount (can’t remember if based on past number of days) and sells it into the market for a premium to what they bought it at. They don’t intend to hold as they make their profit with this premium. I think you are correct that they don’t have the ability to short the stock, but dilution alone or the threat of never ending dilution has put a cap on this stock.

[WeeZuhl]

There is nothing in the agreement that states that Lincoln Park will buy shares below market price.

LOL of course there is. This is how LPC makes money. They buy discounted stock and immediately sell at market prices.



https://sec.report/Document/0001213900-20-017103/

(ii) “Purchase Price” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, ninety-seven percent (97%) of the lower of: (i) the lowest Sale Price on the Purchase Date for such Regular Purchase and (ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date for such Regular Purchase (in each case, to be appropriately proportionately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).