By Susanna Moon
Chicago, June 5 - Elite Pharmaceuticals, Inc. said it completed the $1 million initial closing under the $3.75 million private placement of its series D convertible preferred stock with Epic Investments, LLC, according to an 8-K filed Monday with the Securities and Exchange Commission.
Elite said it issued 1,000 shares of its series E convertible preferred stock at a price of $1,000 per share.
Epic also acquired a warrant to purchase 20 million common shares, exercisable at $0.0625 until June 3, 2016.
On March 23, the company said it planned to sell a total 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.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $3.75 million
|
| Shares: | 3,750
|
| Price: | $1,000
|
| Conversion price: | $0.05
|
| Conversion ratio: | Into 20,000 shares
|
| Warrants: | For 120 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.0625
|
| Investor: | Epic Investments, LLC
|
| Pricing date: | March 18
|
| Settlement date: | June 5 for $1 million
|
| Stock symbol: | Amex: ELI
|
| Stock price: | $0.06 at close March 18
|
| Market capitalization: | $4.54 million
|
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