Deals sell stock to Lincoln Park with a floor price of $0.07 per share
By Devika Patel
Knoxville, Tenn., April 22 - Elite Pharmaceuticals Inc. arranged a $10 million share purchase agreement with Lincoln Park Capital Fund, LLC on April 19, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell the common shares to Lincoln Park over three years. The pricing will be fixed through a formula based upon market prices of the common stock, subject to a floor price of $0.07.
Lincoln Park will make the purchases in tranches of up to $80,000. The investor was paid 2,929,115 shares in connection with the agreement and will receive another 2,929,115 shares over the term of the agreement.
Proceeds will be used for general corporate purposes and working capital requirements.
Based in Northvale, N.J., Elite develops oral controlled-release products.
| Issuer: | Elite Pharmaceuticals Inc.
|
| Issue: | Share purchase agreement
|
| Amount: | $10 million
|
| Tenor: | Three years
|
| Price: | Floor of $0.07
|
| Warrants: | No
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | 5,858,230 shares
|
| Pricing date: | April 19
|
| Stock symbol: | OTCBB: ELTP
|
| Stock price: | $0.07 at close April 18
|
| Market capitalization: | $26.4 million
|
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