Investor Socius CG II to buy 10% series F preferred shares, warrants
By Devika Patel
Knoxville, Tenn., Jan. 5 - Elite Pharmaceuticals, Inc. arranged a $5 million purchase agreement with Socius CG II, Ltd. on Dec. 30, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal will sell 10% series F redeemable preferred shares to the investor over two years.
The investor is also obligated to buy an equal amount of common stock at $0.07 per share. Socius will also receive two-year warrants for 25 million shares. The warrants are exercisable at $0.07, which is identical to the Dec. 29 closing share price.
The company also must pay the investor a $250,000 commitment fee in cash or shares.
Based in Northvale, N.J., Elite develops oral controlled-release products.
| Issuer: | Elite Pharmaceuticals, Inc.
|
| Issue: | Series F redeemable preferred shares, common shares
|
| Amount: | $5 million
|
| Tenor: | Two years
|
| Dividends: | 10%
|
| Call: | Yes
|
| Warrants: | For 25 million shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $0.07
|
| Investor: | Socius CG II, Ltd.
|
| Fees: | $250,000
|
| Pricing date: | Dec. 30
|
| Stock symbol: | OTCBB: ELTP
|
| Stock price: | $0.07 at close Dec. 30
|
| Market capitalization: | $27 million
|
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