Deals sell stock to Lincoln Park with a floor price of $0.10 per share
By Toni Weeks
San Luis Obispo, Calif., April 14 - Elite Pharmaceuticals Inc. arranged a $40 million share purchase agreement with Lincoln Park Capital Fund, LLC on April 10, according to a press release.
The company will sell the common shares to Lincoln Park over three years. The pricing will be the lower of (i) the lowest sale price on the purchase date and (ii) the average of the three lowest sale prices for the stock during the 10 consecutive trading days ending the day prior to the purchase date, subject to a floor price of $0.10.
Lincoln Park will make the purchases in tranches of up to 800,000 shares, with a cap of $760,000 per transaction. The investor was paid 1,928,641 shares in connection with the agreement and will receive another 1,928,641 shares over the term of the agreement.
Proceeds will be used to develop the company's pipeline of products, including abuse-resistant opioids, and for general corporate purposes.
Based in Northvale, N.J., Elite develops oral controlled-release products.
| Issuer: | Elite Pharmaceuticals Inc.
|
| Issue: | Share purchase agreement
|
| Amount: | $40 million
|
| Tenor: | Three years
|
| Price: | Lower of (i) lowest sale price on purchase date and (ii) average of three lowest sale prices for the stock during 10 consecutive trading days ending the day prior to the purchase date; floor of $0.10
|
| Warrants: | No
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | 3,857,282 shares
|
| Pricing date: | April 10
|
| Stock symbol: | OTCBB: ELTP
|
| Stock price: | $0.3175 at close April 11
|
| Market capitalization: | $205.03 million
|
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