Can Elite Pharmaceuticals, Inc. (OTCBB:ELTP) Stem Volatility?
The last two months have been anything but uneventful for Elite Pharmaceuticals, Inc. (OTCBB:ELTP). The company’s stock has more than doubled in price compared to its early August levels. However, the ride has been a turbulent one, with ELTP charting large red swaths following major climbs.
The ticker closed nearly 6% green yesterday, moving sizable volume of over 5.7 million shares. The move was assisted by a press announcement from the company that hit the wire yesterday morning and was also published as an 8-K ifling.
Elite announced the signing of an agreement with an Epic Pharma LLC, according to which Epic will have the right to produce and distribute twelve ‘generic products’ owned by elite on the territory of the U.S. and Puerto Rico. The deal includes exclusive rights for half of the products. As per the agreement, ELTP will receive license fees and milestone payments, with the fees defined as a monthly percentile rate of gross profits and milestone payments starting this November. The initial agreement is for a term of five years, with the option of an extention for another five years.
ELTP logged loss from operations in its most recent quarter but finally recorded net profit in its balance sheet due to $2.8 million recorded as ‘change of fair value’ of warrant derivatives. The ticker is still volatile, with red days cutting into significant climbs, so caution is advised.
Other stocks of interest in yesterday’s session include Pacific Clean Water Technologies, Inc. (OTCMKTS:PCWT) – the latest Awesome Penny Stocks pump. PCWT seemed to really take off in the morning but was back near its opening price by noon, then after wobbling along throughout the afternoon, closed the day 4% down. Imageware Systems, Inc. (OTCMKTS:IWSY) had another bad day, closing 12% down and stopping at $1.31 per share.