Elite Pharmaceuticals Announces Bridge Loan Facility
NORTHVALE, N.J., Oct. 16, 2013 (GLOBE NEWSWIRE) -- Elite Pharmaceuticals, Inc.
("Elite") (OTCBB:ELTP) announced today that it has entered into a credit line
agreement ("Credit Line") with Nasrat Hakim, Elite's President and Chief
Executive Officer. Pursuant to this agreement, Mr. Hakim has agreed to provide
to Elite a line of credit not to exceed $1,000,000. Proceeds will be used to
support Elite's acceleration of product development activities.
Pursuant to the agreement, Elite has access to a line of credit in the maximum
principal amount not to exceed $1,000,000. The Loan carries an annual interest
rate of 10%, with such interest to be paid quarterly. The Loan will mature on
June 30, 2015. Elite may prepay any amounts of the Loan without penalty. Elite
may borrow, repay, and reborrow under the Loan.
Additional details regarding the loan will be included in a Current Report on
Form 8-K which will be filed with the Securities and Exchange Commission.
Mr. Hakim stated that "this credit line matches the credit line already
extended by our Chairman, Mr. Jerry Treppel, and when combined with the
previously established Lincoln Park equity line, is another step in our
endeavor to secure the critical mass financing which is required for the
further development and eventual commercialization of products utilizing
Elite's patented abuse resistant technology.I firmly believe in the
superiority of Elite's technology and am grateful to Elite's Board for
allowing me to demonstrate my confidence by providing much needed funding to
help Elite achieve its potential."
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 six commercial products currently being sold, an
additional product approved and soon to be launched, eleven 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 Mikah Pharma to develop a new product, 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: Elite Pharmaceuticals, Inc.
Dianne Will, Investor Relations, 518-398-6222
Elite Pharmaceuticals, Inc Logo
Press spacebar to pause and continue. Press esc to stop.