Elite Pharmaceuticals Inc. (OTCBB:ELTP) Fails To Submit Report
Elite Pharmaceuticals Inc. (OTCBB:ELTP) stumbled 7.53% yesterday, when it became clear that the 10-Q that was due on May 15 was nowhere to be seen.
For a few sessions it looked like things were going well – the company had almost recovered from its most recent red run. This was just one of the reasons why the said 10-Q was so highly anticipated – a solid balance sheet could have launched the company up the charts. The company’s latest report, for the quarter ended Dec 31, showed investors some disconcerting figures, but gave some hope that the situation may change for the better:
- Cash – $1 million
- Total Current Liabilities – $12.5 million
- Total Revenues – $1.6 million
- Net loss – $1 million
True, the company was deeply indebted, but the fact that it is making significant revenues and has over a million dollars in cash at its disposal did add to its credibility. A good report on recent activities would have helped to convince investors that the company is moving in the right direction and may indeed be worth considering. Unfortunately for ELTP enthusiasts, the lack of such a filing convinced many that the very opposite is true right now.
Moreover, if the company doesn’t make a filing on the quarter ended March 31 it will be demoted from its current OTCQB status to PINK. Such a demotion is likely to affect more than just prestige – it could deal a serious blow to the company’s market standing. Investors should definitely keep this in mind when they decide whether or not to commit to ELTP stock.
Another company that took a beating yesterday is Solanbridge Group Inc. (OTCMKTS:SLNX), who lost about 7% of its market value over the span of one session.