Elite Pharmaceuticals, Inc. Secures $10 Million Funding Commitment From Lincoln Park Capital Fund, LLC
April 22 2013 - 8:00AM
Elite Pharmaceuticals, Inc. ("Elite" or the "Company") (OTCBB:ELTP)
announced today that it has entered into a $10 million common stock
purchase agreement with Lincoln Park Capital Fund, LLC ("LPC"), 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 three 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.
Commenting on the new financing, Elite's Chairman and CEO, Jerry
Treppel said, "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. 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.
This press release does not and shall not constitute an offer to
sell or the solicitation of any offer to buy any of the securities,
nor shall there be any sale of the securities, in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state.
About Elite Pharmaceuticals, Inc.
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. Elite's lead pipeline
products include abuse resistant opioids utilizing the Company's
patented proprietary technology, and a once-daily opioid. They
are sustained release oral formulations of opioids for the
treatment of chronic pain, which address two of the limitations of
existing oral opioids: the provision of consistent relief of
baseline pain levels and deterrence of potential abuse. Elite
also provides contract manufacturing for Actavis and Ascend
Laboratories (previously a subsidiary of ThePharmaNetwork and now a
subsidiary of Alkem Laboratories Ltd.) and has partnered with Mikah
Pharma to develop a new product, with Hi-Tech Pharmacal to develop
an intermediate for a generic product, and a Hong Kong based
company to develop a branded product for the United States market
and its territories. Elite operates a GMP and DEA registered
facility for research, development, and manufacturing located in
Northvale, NJ.
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Including those related to the effects, if any, on future
results, performance or other expectations that may have some
correlation to the subject matter of this press release, readers
are cautioned that such forward-looking statements involve risks
and uncertainties including, without limitation, delays,
uncertainties, inability to obtain necessary ingredients and other
factors not under the control of Elite, which may cause actual
results, performance or achievements of Elite to be materially
different from the results, performance or other expectations that
may be implied by these forward-looking statements. These risks and
other factors, including, without limitation, the Company's ability
to obtain sufficient funding under the LPC Agreement or from other
sources, the timing or results of pending and future clinical
trials, regulatory reviews and approvals by the Food and Drug
Administration and other regulatory authorities, intellectual
property protections and defenses, and the Company's ability to
operate as a going concern, are discussed in Elite's filings with
the Securities and Exchange Commission, including its reports on
forms 10-K, 10-Q and 8-K. Elite undertakes no obligation to update
any forward-looking statements.
CONTACT: For Elite Pharmaceuticals, Inc.
Dianne Will, Investor Relations, 518-398-6222
Dianne@elitepharma.com
www.elitepharma.com
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