Elite Pharmaceuticals Secures $10 Million Funding
Elite Pharmaceuticals, Inc. recently announced it has entered into a $10 million common stock purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor. The company has agreed to file a registration statement with the U.S. Securities & Exchange Commission (SEC) covering the shares that may be issued to Lincoln Park Capital under the terms of the common stock purchase agreement.
After the SEC has declared the registration statement related to the transaction effective, the company has the right, at its sole discretion over a period of 3 years, to sell up to $10 million of its common stock to LPC under the terms set forth in the agreement. Proceeds from the transaction will be used to develop the company’s pipeline of products, including the abuse-resistant opioids, and for general corporate purposes.
“We are pleased to have Lincoln Park as an investor in Elite. Since the fall of 2011, Elite has demonstrated its ability to add new products, having eight new products approved or launched since then,†said Elite’s Chairman and CEO, Jerry Treppel. “We intend to use some of the proceeds from this financing to help develop and advance our pipeline of products, including the abuse-resistant opioids.”
Under the terms of the agreement, there are no upper limits to the price that LPC may pay to purchase Elite’s common stock. Elite will control the timing and the amount of shares to be sold. LPC has no right to require any sales and is obligated to purchase common stock as directed by Elite. Under the terms of the agreement, LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Elite’s shares of common stock. In consideration for entering into the agreement, Elite has issued shares of common stock to LPC as a commitment fee and will issue additional commitment fee shares in proportion to the amount of shares purchased by LPC under the agreement.
Additional details regarding the financing are included in a Current Report on Form 8-K filed today by Elite with the Securities and Exchange Commission.
Elite Pharmaceuticals, Inc. develops oral sustained- and controlled-release products. Elite’s strategy includes assisting partner companies in the life cycle management of products to improve off-patent drug products and developing generic versions of controlled-release drug products with high barriers to entry. Elite has five commercial products currently being sold, an additional product approved and soon to be launched, and one additional product pending approval by the FDA. For more information, visit www.elitepharma.com.
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