Georgi Kamburov

Elite Pharmacetuicals Inc (OTCMKTS:ELTP) Drops Further Down

by Georgi Kamburov July 20, 2016

It seems that whatever confidence the conference call had inspired in investors dissipated rather quickly, though, and yesterday ELTP suffered another painful drop. This time there was nothing new to stop the ticker from going down and it crashed by 10.4%, closing the session $0.208 per share.

The stock could continue to exhibit heightened volatility in the coming days. While ELTP have stated that they have never been in a better financial state the potential of millions of cheap shares finding their way to the open market as well as the impact of the FDA's decision could drive the stock even further down. Investors should keep in mind that the S-1 registration statement for the resale of 63 million shares by Lincoln Park became effective last week. Between March 31, 2015, and June 7, 2016, close to 30 million shares had been sold to Lincoln Park. In the past couple of months ELTP also issued 9.3 million shares at an average of $0.065 per share through the exercise of warrants.

It is of vital importance to do your own research when approaching the stock of the company. Even if you believe in ELTP's potential you should use still use caution when putting any amount of money on the line. 

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