Well, to be literal, Nasrat did not borrow it, Elite did. Why? As has been said by many in the business world, debt is cheaper than equity. Even with sufficient cash in hand, it is why we borrow to buy...homes, cars, or new tech gear. It is why we see a range of businesses in various industries borrow funds when they seemingly have cash.
Of course, this is one of the many decisions we outsiders do not see discussed that take place and are meaningful to Elite's long term business development. Things like new product development, new partnerships. The business reality is that Dexcel did not arrive miraculously without hard work, neither did SunGen, LCI or the company that is likely to replace them. Other areas of management influence that fail to get recognized include managing and negotiating the cost of API, the choice of partners, the supply chain management and decisions of who Elite partners with and the costs and terms. These are all ongoing decisions that affect cash flow and profitability; these are the things happening when wondering "what they are doing".
We know that Elite has managed to avoid BK narrowly, as access to LPC was prevented due to the p/s being held below the 10 cent threshold; which is why LPC-3 had a 3 cent basement. Now, the business is growing and that is what borrowing funds will help with and...without dilution.
The reality is that Elite looking to invest funds in growing the business and are doing it in a disciplined manner. While some may only care about the p/s, as if disconnected from the business, it remains that a profitable business increases its value and that matters in the long run because it will reward investors.