Jones Lang LaSalle

Elite Announces $10 Million Private Placement

Elite Pharmaceuticals (AMEX: ELI) has wrapped up a private placement of $10 million to a group of institutional and private investors through Indigo Securities to fund new product development efforts and to keep its listing on the American Stock Exchange.

The Northvale-based firm issued 10,000 shares of Series B preferred stock at $1,000 per share, with each share initially convertible to 444.4444 shares of common stock set at $2.25 per common share. Investors of the preferred stock will also receive two common stock purchase warrants.

The first warrants are exercisable for a period of five years and allows for the purchase of up to 1,111,111 shares of common stock at an exercise price of $2.75 per share. The second warrants have the same terms but the exercise price is set at $3.25 per share.

The specialty pharmaceutical firm expects the AMEX to deem its shareholders' equity as sufficient for continued listing upon taking the private placement into consideration.
Elite shares were unchanged this afternoon at $2.25. - Ki Kim