Elite Pharmaceuticals, Inc. Secures Funding Commitment of Up to $40 Million From Lincoln Park Capital Fund, LLC
April 14 2014 - 7:30AM
Elite Pharmaceuticals, Inc. ("Elite" or the "Company") (OTCBB:ELTP)
announced today that it has entered into a common stock purchase
agreement with Lincoln Park Capital Fund, LLC ("LPC"), a
Chicago-based institutional investor for up to $40 Million.
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 President and CEO, Mr.
Nasrat Hakim said, "This commitment from Lincoln Park helps Elite
to develop our range of abuse resistant opioids on an accelerated
pace. By investing in the clinical development of our abuse
deterrent products, we expect to significantly increase the value
of these products in anticipation of future product
partnerships. There is a great interest in our technology and,
as Elite has done since I started here last August, we will
continue to aggressively scale up and complete the clinical studies
necessary to file these products as soon as possible. Our
first filing is expected to be by year's end."
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 an aggregate of $40 million of its common
stock to LPC under the terms and amounts as set forth in the
agreement.
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 seven commercial products currently being sold, twelve
additional approved products pending manufacturing site transfer
and two additional products under review 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 Ascend Laboratories (a subsidiary of Alkem
Laboratories Ltd.) and has partnered with Epic Pharma for the
manufacturing and distribution of eleven approved products pending
manufacturing site, 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, its ability to
obtain FDA approval of the transfers of the ANDAs or the timing of
such approval process, 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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