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What a long strange trip this has been...and it's about to get weirder. Buckle up for a long one with insights in to some amazing tidbits from this conference call, but I'll give a TLDR at the end for those with low attention spans.
For those that haven't seen my posts on this stock - I've been calling it out as a phenomenal investment since around 4 cents and accumulated the majority of my 6+ million shares in that range. Since that time, I've gained a lot of supporters as well as haters for my DD on this stock. For someone who used to be known as the King of Trolls, let's go ahead and feed the haters first.
1. I was wrong about my called shot about the company selling earlier than my original support of Nasrat's (the CEO) estimate of August of 2026 for a sell date. I thought that September 12th of 2025 was going to be the day as I was expecting Kirkov's (Chief Business Officer) shares to vest and they would close the deal afterwards.
2. I failed to note that Little Doug still had some shares left to vest last month. I mentioned that in a much earlier post, but lost sight of it when he sold some shares and thought that that was where the delta came from when looking at all vesting shares that were on the horizon.
3. I made a called shot that when Nasrat said he wanted to have the company sold by the end of the year, that he meant the fiscal year (March 31st, 2026) and not the end of 2025 calendar year. I committed to donating $5k to the top two charities mentioned in that post if I was wrong. Although, I'm not technically wrong yet, I am now getting the checkbook ready as you'll see from the DD below.
4. I originally though revenue would hit about $260 to $300 million this year, but, to be fair on this one, I thought we would have completed the buyout of the other half of the Adderall stream we have an agreement on which, based on the estimate of our 50/50 split, should be another $80 million a year in revenue which would get me pretty close to the $260 number. Where I was wrong was I didn't account for the WAC (Wholesale Acquisition Cost) during my initial excel breakdown when generic Vyvanse launched. I did promptly update that sheet though).
What I was right on:
1. When I said there was "someone in the room" last year and that Nasrat was already talking to buyers, I was right. A few months after that Nasrat disclosed that an "unsolicited buyer" showed interest in the company and was given a tour of the manufacturing facility and HQ. Nasrat also stated that he doesn't just walk ANYONE through the company facilities, but that they were vetted out first. ie. someone was in the room and after getting vetted they were then shown what was behind the curtain.
2. This one's obvious...but I called this stock at 4 cents and was pounding the walls at 2.7 cents.
3. That Nasrat's avoidance of opioids during the slew of lawsuits (see Purdue Pharma and the Sackshit family) wasn't wrong or bad - it was prudent and tactful. ELTP was so small back then that a single lawsuit filed would have bankrupted the company. Instead, this company is turning in to a thoroughbred. It's gone from sub $6 million in revenue to on pace for $140 to $150 million this year.
Earnings Call:
Other than knock it out of the park numbers. Let's go over the items that really caught my attention - good and bad.
1. Discussion about buyers - it doesn't look like it's going well here. Understandably, buyers want to pay the least amount, and sellers want the most. I expected this to go better, BUT here is the silver lining. The Supreme Court ruled against Trump tariffs today. While the FUDsters tried to use tariffs as a bad thing, anyone with at least a two digit IQ could see that tariffs were a big potential motivator for a foreign company to buy ELTP. Luckily, the tariffs that got shot down were imposed under the International Emergency Powers Act (IEEPA). The tariffs for pharmaceuticals fall under Section 232 of the Trade Expansion Act of 1962. So, this is still a motivating factor for international buyers. More buyers - more push on the demand curve.
Although, I really want this option, I look at the underlying stock value here and I know the end game value. The stock is clearly susceptible to manipulation with the low volume it has. The CEO discussed it directly in this conference call this week:
"Considering how our market is on the OTC and how easy it is for people to manipulate the stock because it's, it doesn't have high volumes, if I am to authorize a reverse split, which I never will, unless we're going to Nasdaq, okay? Then with manipulation, the price will gravitate down to where it is today, okay? So this is not a smart thing. It's not a good thing for the stockholders. It's not a good thing for me, who is the number one stockholder."
The only thing that can counter manipulation is a strong buy trend, and that is unlikely to have sustained power with paper handed investors. Which brings us to the next point...
2. Discussion of uplisting - Nasrat stated that the number one focus is STILL on a buyout, but if we do not get a fair price, then we will look to uplist. As you can see from the quote above though - he is ADAMANTLY against a reverse split unless it is directly associated with an immediate uplisting. He knows that if a RS happened and we stayed on the OTC, we would just get manipulated back down. I'm actually completely ok with this option. The attention we would get on the NASDAQ would be very positive in my opinion. Look at the price of TEVA and they are absolutely SADDLED with debt. Look at the $3.1 billion valuation Lannett had just a few years ago and the writing was on the wall with how bad their debt situation was. ELTP is literally in a better situation right now than Lannett was at that $3.1 billion valuation which would put us at an equivalent of $3 per share. One last thing on valuations - a friend of mine who runs investment portfolios was astounded at this stock's performance. He said he never let's a stock get too much of a percentage of his portfolio, but he is just blown away by the fundamentals here and has to keep accumulating. He said just using a Buffett style base analysis of value as is TODAY the price should be 96 cents - that's completely discounting forward earnings, any existing tech/patents, and unknown positive BE results. I'm also fairly certain he doesn't know that ELTP can purchase another the other half of the adderall revenue which should come to about $70 to $80 million a year in revenue for less than $12 million based on ELTP's prior agreement.
3. "Other options" - if you stayed with me, here is where it gets very interesting. Nasrat said, "We always try to think on multiple levels. Even though M&A is our number one priority, we have explored a lot of other things that I cannot discuss. ... So we are working on all of this at the same time."
What could these other options be? Here's what I think:
The first thing that I think is possible is a potential JV of sorts with a high profile company. In real estate, many developments are done as JVs or syndications to both spread the risk and to make it even feasible to fund a project. In a commercial project, the goal is to retain an "anchor tenant" for the development to induce other tenants to want to lease the rest of the space available. Let's apply the analogy to ELTP. If ELTP were to enter into an agreement with a very large "anchor investor" to purchase, let's say 3 to 5% of the outstanding stock (not issue new shares) at $4 per share, it would send out a massive signal to the market that Johnson Johnson, Bristol Meyers Squibb, Teva etc. sees the value in the company and many investors would potentially follow suit. At $4 per share, ELTP could uplist organically at that point, and the Anchor Investor has a relatively low side of risk while potentially forming a strategic relationship at the same time. Why wouldn't a company just buy the stock on the open market though, Wolv?!?? On October 23, 2023 5 million shares were purchased that a HALF of one percent of the stock, and the stock shot up 40%. Again, low volume stocks can drastically rise on small purchases. There's a real possibility that a 50 million share purchase on the open market could cause the stock to rise higher than $4 anyways. So why WOULD a company do this? Pfizer, for increased manufacturing availability by using ELTP's downcycles in the FDA approved manufacturing plant. TEVA could benefit from tariff avoidance. Bristol Meyers Squibb...perhaps the same as Pfizer or perhaps they both would be interested in hedging the generic Elliquis bioequivalent study that ELTP just got in November since those companies both share the patent to Elliquis. Of course, you could say, "Why not just slowly acquire shares over time then?" Fair, but, there's nothing to say they aren't and that wouldn't garner any potential beneficial relationship with ELTP. Additionally, I think it's possible for the "Anchor Investor" to negotiate a purchase of the rest of the stock at a set price as long as it was disclosed in an 8-k and voted on by the shareholder almost like a call option. That would set a potential demand floor on the price as well as give them upside gain if ELTP continued to have massive growth without the risk of overcommitting cash. Now, the last piece to tie this WHOLE point together. This would be incredibly difficult to do in many scenarios except that ELTP is in a unique situation to pull this off. See, that 5% of shares can't come from nowhere, but, luckily we have someone who would, quite bluntly have a huge personal interest in helping to get this done - Nasrat. He owns about 20 to 25% of the total shares of the company. He could potentially agree to sell HIS shares directly to Pfizer (or whatever company) without any need for dilution or shareholder vote. It would also allow him to enjoy a $200 million payout for the work he has done so far for the company. (I'm not 100% sure if this last point would present a legal issue here since it would also benefit all of the shareholders).
Second "other option" could be a merger with a private company who is also interested in an uplisting. Especially if that company is also looking to avoid potential tariffs. And ESPECIALLY if there was already goodwill between ELTP and this company for work that Nasrat had helped them to do. Enter Dexcel. It's a great fit for this option, and, although I think Israel is exempt from many tariffs, I don't think they are exempt from the global tariff one. Also, the drugs that Dexcel may sell to European countries may be subject to THAT country's tariffs. Who are other companies that would complement ELTP in merging to attempt an uplisting together? Tris Pharma - located in New Jersey about an hour away from Elite and doing $90 million in revenue. PAI Pharma in South Caroline - excellent synergy for a merger partner. They specialize in oral liquids and are estimated to be doing $250 to $500 million per year. Two others would be Alora and Centrexion with good synergies for potential opioid and pain management that would potentially benefit from being able to combine assets to finish out bring Opioid Anti Abuse technology that Elite has to the market.
The third "other option" would be similar to above, but ELTP would do a SPAC reverse merger. Popularized by Chamath Palipataya (might have butchered that - sorry, Chamath - blame Jason), but recently fallen out of favor these moves are still very beneficial in a situation like this. In fact, there are a few very good and very clean SPAC shells available for ELTP to work with on this route: DMII - Drugs Made in America Acquisition II Corp (if it's in the name, it's in the game - great natural fit that just IPO'd in September of 2025), SPACSphere Acquisition Corp (new with no baggage and fresh cash in the trust), Archimedes Tech SPAC (Just IPO'd on January 22nd of this year - clean and fresh $200 million cash raise - tech leaning but that doesn't preclude them, especially with the Sequestox patent technology play that ELTP has), and a few others such as Averin and M EVO. All of these SPACS are already on the NASDAQ and a deal getting cut would mean an immediate uplist for ELTP.
Fourth option: a convertible preferred stock sale to a Fund at $4 a share with an option to convert to common if the stock hits over X price. ELTP gets cash out of this one, strong signal to market to organically push price up, dividend to preferred. Nice straddle strategy, but I like other options more. I don't DISLIKE it, because the downside is low and the upside is a win for all investors with dilution only happening if the stock hits a price that no one would complain about would care about the dilution anyways.
Finally, let's get balls out creative for what Nasrat could consider...and I like this option a LOT as well:
Employee Stock Ownership Plan (ESOP) combined with a Public Auction
Legally sound pathway with tax perks as well. Insiders could pool a chunk of shares and put them into a Trust. Then they publicly auction off the shares with a minimum bid of $4 per share, but here's the twist - bidders MUST commit to holding period for 90 days POST uplisting. A fund or the "Anchor Investor" bids and then files their 13G. This would send a massive buy signal to the market based on a locked in investor base combined with insider confidence. No new shares, no dilution - just moving stock to a stable hand that signals high value. Nasdaq requirement would be met and ELTP could uplist. Bonus for Nasrat and any employees who participated? The ESOP makes this an employee friendly option, provides for tax write offs and could potentially be tied to performance bonuses and thank you's to the people who helped build this company. It would be like an inside out buyback.
One last little potential present for all of you from a friend of mine. I'll be respectful since he asked me to be vague about this. Australia has a lot of opportunity. The TGA has a streamlined application for approvals if a company is already FDA approved. The COR-B timeline is 175 working days and evidence of GMP (Good Manufacturing Practices) should streamline that timeline. We know that ELTP has GMP because it was required to get the new facility approved last year.
Congratulations, shareholders ;)
Patience will be rewarded - A Friend

TLDR:
I was wrong on some things and I might have to pay $10k to charity next month.
I was right on some things. That should help cover the charity donation I committed to.
Buyout offers likely aren't hitting the number the CEO wants, but the tariff incentive is still there since the Supreme Court ruling today doesn't apply to Pharma tariffs and CEO said buyout still 1st priority.
NO REVERSE SPLIT - unless it is immediately correlated with an uplisting
"Other Options" mentioned in call and my theories and thoughts on that topic are: 1. JV with "Anchor Investor". 2. Merger with private company to uplist together. 3. SPAC reverse merger for immediate uplisting and provided potential candidates. 4. Preferred stock with convertible option. 5. ESOP combined with Public Auction.

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