Last month, Elite Pharmaceuticals was awarded U.S Patent No. 8,182,836 clearing the way for them to begin producing a time-release opiate that prevents users from abusing their product. However, it was today’s announcement of a $500,000 bridge loan that saw the stock gain nearly 15% on a day that saw the biggest across the board stock price drop in three weeks.
Jerry Treppel, Elite’s CEO, has agreed to provide a line of credit not to exceed $500,000 to the company he runs. The loan is being made in order for Elite to accelerate its commercialization of its existing products and the development of new products that await patent approval. The loan has been granted at a 10% annual interest rate with interest payments to be paid quarterly beginning in three months time.
The company has already begun purchasing equipment and hiring staff in anticipation of the finalization of the loan terms.
With OxyContin deaths worldwide rising nearly five fold since 2008, It is the hope of all at Elite Pharmaceuticals that they will produce products, for those suffering from chronic pain, that can not be crushed up in order to circumvent the time-release formulas in existing products such as OxyContin. Additionally, Elite’s mission statement is clear, they strive for a pain killer that, while an opiate, will not get their users hooked but rather enable them to live their life with some alleviation of pain.
In addition to the aforementioned terms of the loan, Elite will be allowed to prepay and and all parts of the loan without penalty and will also be allowed to borrow, repay, and re-borrow without limits.
Expect continued news from Elite as their pending patents are expected to be announced in the near future. For additional information, on Elite check the following links.
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