New Issue: Elite Pharmaceuticals sells $4.663 million convertible preferreds

By Sheri Kasprzak

Atlanta, Oct. 12 - Elite Pharmaceuticals Inc. closed a $4.663 million private placement of convertible preferred stock Tuesday.

The deal was structured as 379,121 shares of series A preferred stock at a price of $12.30 each.

Investors received two common stock purchase warrants for each share of preferred stock. The warrants allow for the purchase of five shares of common stock at an exercise price of $1.54.

Elite Pharmaceutical is based in Northvale, N.J., and specializes in oral controlled-release products. Proceeds from the deal will be used to develop the company's line of pain products.

Issuer:	Elite Pharmaceuticals Inc.
Issue:	Series A convertible preferred stock
Amount:	$4,663,195.30
Shares:	379,121
Price:	$12.30
Conversion price:	$1.23
Conversion ratio:	10 (3,791,210 shares)
Warrants:	Two common stock purchase warrants for each preferred share
Warrant expiration:	Dec. 31, 2005
Warrant strike price:	$1.54
Placement agent:	Indigo Securities LLC
Settlement date:	Oct. 12
Stock price:	$1.75 at close on Oct. 12

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