| Oct 12, 2004 |
| Elite Pharmaceuticals Completes $4.6 Million Private Placement |
Northvale, New Jersey, Tuesday, October 12, 2004: Elite Pharmaceuticals, Inc. (“Elite” or the “Company”) (AMEX: ELI) announced it has effected a private placement of $4,663,195.30 to a group of institutional and other private investors through the issuance of 379,121 shares of its Series A Preferred Stock at a price of $12.30 per share, each share initially convertible into ten shares of Common Stock, or an aggregate of 3,791,210 shares of Common Stock. Each purchaser shall also receive two Common Stock purchase warrants for each share of Series A Preferred Stock acquired. Each warrant represents the right to purchase five shares of Common Stock, or an aggregate of 3,791,210 shares of Common Stock for both warrants at an exercise price of $1.54 per share. The Series A Preferred Stock is entitled to voting rights, on an as converted basis, with the Common Stock as one class. Indigo Securities, LLC acted as placement agent.
Bernard Berk, Chairman and CEO of Elite commented, “We are pleased to have completed this placement which will contribute materially to our efforts to accelerate the development of our portfolio of pain products as well as our other controlled release products utilizing our proprietary oral drug delivery systems and abuse resistance technology.”
About Elite Pharmaceuticals
Elite Pharmaceuticals is a specialty pharmaceutical company principally engaged in the development of oral, controlled release products. Elite develops controlled release products internally using its proprietary technology and licenses these products. The Company's strategy includes developing generic versions of controlled release drug products with high barriers to entry and assisting partner companies in the life cycle management of products to improve off-patent drug products. Elite's technology is applicable to develop delayed, sustained or targeted release pellets, capsules, tablets, granules and powders. Elite has a pipeline of six drug products under development in the therapeutic areas that include cardiovascular, pain management, allergy and infection. The addressable market for Elite’s pipeline of products exceeds $2 billion. Elite also has a GMP and DEA registered facility for research, development, and manufacturing located in Northvale, NJ.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any security. The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, and applicable state securities laws or an applicable exemption from registration requirements. The Company has agreed to file a registration statement covering the resale of the shares of Common Stock issuable upon conversion of the Series A Preferred Stock, upon exercise of the Warrants and as a dividend on the Series A Preferred Stock.
FOR FURTHER INFORMATION, CONTACT:
Dianne Will, Investor Relations for Elite Pharmaceuticals, Inc.
Phone: 518-398-6222 E-Mail: dwill@willstar.net
This release contains forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include results of current or pending research and development activities, actions by the FDA and other regulatory authorities, and those factors detailed in the Company's filings with the Securities and Exchange Commission such as 10K, 10Q and 8K reports. |
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