Enough about LPC. There have been so many mischaracterizations it defies logic.
LPC is, in fact, a lender of last resort for many companies and that is why a number of companies with LPC agreements fail. For Elite, if LPC does not step in the company would have failed. In fact, the effort to keep Elite below the LPC share pricing limit almost did cause them to fail and that is what led to the most recent iteration of LPC that moved the share price basement from 10 cents to 3 cents.
But, the manner in which the execution transaction took place was much less maligned than has been portrayed.
Elite decided when they needed LPC money and would provide shares to LPC that they had to sell immediately, with that money being transferred to Elite as the means to fund the company. So, there was no holding onto shares by LPC as it would violate the agreement and, frankly, would put their own operation at a deficit. Why? Because the share price the day Elite gave the shares to LPC was the day the calculation would be made on the total of the funds Elite would receive.
Suggesting LPC is somehow holding onto shares or trying to play the share price belies the contract reality and I really suggest investors read it. Let's be clear, Elite's finances do not need to rely on LPC funding. They have cash reserves and, most recently, a for-real bank loan of $12M that obviates any need to tap LPC. So, LPC will have done what Elite needed it to do and the remaining time will expire without any need for Elite employing LPC. So stop the nonsense. PERIOD!
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