Replies to post #416047 on Elite Pharmaceuticals Inc (ELTP)

[sharkey1]

Mikah owns half of the Adderall's. IR and ER, and that is perfectly fine by me and most of the investors, as it
is a natural poison pill deterrent from a hostile takeover, Also . no big pharma will touch Elite with that
type of hang over baggage, , So when/if you see an 8k that says Elite took out a loan to buy out Mika, hold
your hats. IT's ON,

[HGiLS]

Dum dum dum dum

[WeeZuhl]

What is the Mikah Tax?

Mikah is the private company the CEO uses for unfair self-deals. Mikah sells nearly-worthless ANDA's to Elite for millions of dollars in deals that shareholders have no say in. The original "merger" with Mikah involved around a dozen drugs. Hakim has never shown any receipts, but it is estimated his purchase price was around ~$25,000 each, or ~$300,000 total for all of them. He sold the ANDA's to Elite shareholders for $10M in a deal approved by the Elite board, who we later found out were his business partners. Hakim then leveraged the promissory note into hundreds of millions of ELTP shares, hitting longs with massive dilution. Those dozen generics haven't been worth much to Elite shareholders, but their current value to Hakim personally is now around $200,000,000 and increasing, based on current share price. Feel free to admire his business acumen if you want, but we all know that accumulation was a simple transfer of wealth from Elite's long investors directly to Nasrat Hakim. He did it again with trimipramine, overcharging Elite shareholders in another self-deal we could not refuse. When it came time to acquire the full rights for Adderall IR & ER, he failed for Elite shareholders but had great success for himself and Mikah. He reneged on Elite shareholders and scooped the deal for himself. When it comes to junk ANDA's, Hakim always found a way to make a cashless deal with Elite shareholders, but when it comes to lucrative Adderall, no such luck for Elite shareholders. It seems he wants to hold on to the Adderall ANDA's, despite multiple promises to Elite shareholders and despite having made millions of dollars for himself in the process. IMO, Hakim is holding the Adderalls in order to make a secret side deal for himself with whatever company acquires Elite. His history of looking out for himself above Elite shareholders is clear and irrefutable, and if he still owns Adderall at the time of the buyout, then Elite's shareholders will once again get screwed and pay a huge price for something we should already own. Repealing the Mikah Tax is very simple. Use a mediator to make a fair deal for both sides and have the shareholders vote on it. It only gets more complicated, more difficult, and more expensive the longer it goes on.


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Mikah may not stop an eventual buyout, but it will definitely slow it down and diminish the payout. Top tier companies will not want anything to do with negotiating with Hakim for both Elite and Mikah, and those that do will expect a deep discount for public Elite in exchange for their private generosity for Mikah. When the buyout finally occurs, every Elite shareholder will pay the Mikah Tax. A true long investor shouldn't care about the day to day share price. A true long should only worry about their total proceeds at buyout, including tax liabilities. A true long should be working diligently to unwind the intermingling of Mikah and Elite -- it is nothing more than common sense tax avoidance strategy.


Mikah Tax -- the cost we will all pay at buyout due to the ongoing intermingling of Mikah and Elite.

1. Cost of Second Tier Suitors -- top companies will stay away
2. Cost of Secret Side Deal with Hakim -- shareholders will never know how much money he demands for himself on the side
3. Cost of Mikah litigation -- multiple class action suits are guaranteed


Repeal the Mikah Tax!! Let's get rid of Mikah now and forever.

Added:

4. Cost of remaining on OTC- no uplisting to NASDAQ as long as Mikah remains comingled with Elite.

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