By Devika Patel
Knoxville, Tenn., March 23 - Elite Pharmaceuticals, Inc. arranged a $3.75 million private placement of its series D convertible preferred stock with Epic Investments, LLC on March 18, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 3,750 preferreds at $1,000 apiece. Each preferred is convertible into 20,000 common shares at $0.05 per share.
Epic also will receive warrants for 120 million common shares. The warrants are exercisable at $0.0625 for seven years.
The deal will be conducted in multiple tranches, with each of the first three tranches consisting of 1,000 preferreds for $1 million and warrants for 40 million shares.
The remaining $750,000 in preferreds will be sold over 12 calendar quarters. These securities will not be accompanied by warrants.
Based in Northvale, N.J., Elite develops oral controlled-release products.
Issuer: | Elite Pharmaceuticals, Inc.
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Issue: | Series D convertible preferred stock
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Amount: | $3.75 million
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Shares: | 3,750
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Price: | $1,000
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Conversion price: | $0.05
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Conversion ratio: | Into 20,000 shares
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Warrants: | For 120 million shares
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Warrant expiration: | Seven years
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Warrant strike price: | $0.0625
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Investor: | Epic Investments, LLC
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Pricing date: | March 18
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Stock symbol: | Amex: ELI
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Stock price: | $0.06 at close March 18
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Market capitalization: | $4.54 million
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