Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Climbs to Record for 2013 Prices
After yesterday’s session the stock of Elite Pharmaceuticals, Inc. (OTCBB:ELTP) reached the record price for 2013 of $0.13, closing near its high of the day. This 20% surge happened on volume of nearly 10 million traded share, almost 4 times the amount of the previous day. Such a strong display of confidence in the medical company came right after the press release they made early in the morning.
In it the company announced that the first shipment of their newest product naltrexone hydrochloride has been made. This bumped the total number of products currently sold to 8. It is a rare sight to see a medical pennystock company that has a completed product not to mention 8 but ELTP have even bigger plans for the future.
In August they executed an asset purchase agreement with Mikah Pharma LLC. and acquired 12 Abbreviate New Drug Applications (ANDA) and 1 that is under active review by the FDA. They didn’t come cheap though and ELTP has to pay $10 million in the form of a secure convertible note. As part of the acquisition they hired Mikah’s CEO Mr. Nasrat Hakim as their new CEO and President. Mr. Hakim has in the past taken various management positions in Actavis and Alpharma.
According to him the biggest strength of ELTP lies in their patented abuse-resistant technology which they will try to prove is better than what their competitors have. The CEO said that he has already been approached by several medical companies regarding this technology and rumours have been flying around ever since.
But for now nothing has been confirmed and the financial results of the company may raise some concerns. For the latest quarter they disclosed having:
- $231 thousand cash
- $1.7 million total current assets
- $5.3 million total current liabilities
- $721 thousand revenues
- $921 thousand net loss
The amount of outstanding shares is also starting to cause issues closing in on 500 million out of the 690 million authorized after the recent conversions of Series E Convertible Preferred Stock.
It is up to you to decide if the positive aspects of ELTP outweigh the risks but be sure to do your own due diligence.
Yesterday two of the most notorious newsletters – Awesome Penny Stocks and Victory Mark, teamed up and started touting the stock of Pacific Clean Water Technologies, Inc. (OTCMKTS:PCWT) . This comes right after the previous APS pick PacWest Equities Inc (OTCMKTS:PWEI) got suspended by the SEC amidst its promotion so the best course of action may be to ignore the current pump altogether.
