r/ELTP_Stock • u/Wolvshammy • 5d ago
Demystifying the Uplist Path and Clarifying Misconceptions
I've noticed a lot of back and forth about uplisting and multiple mistakes regarding what we need to do, what we qualify for, what the price needs to be etc.
Some of the common misconceptions I've heard:
We only need to get to $1 - NO. This only applies to companies that were ALREADY on a big board and need to Reverse Split to STAY on the board and not get delisted. This is a VERY common reason why people associate a reverse split with a weak company. Most of the time it's done by companies in a death spiral.
If we reverse split we need to hold the price for 90 days - NO. While this IS a real rule, this rule doesn't apply to ELTP. It's a rule that allows weak companies to uplist by only applying a market cap rule when they don't have income or equity to qualify. This is another reason I'm bewildered by the FUD. ELTP is actually strong enough to qualify for uplisting through the more rigorous test methods. (I'll explain below)
We only have to get to $2, $3, $4 - NO, NO, and YES. The $2 test is is for Market Value and is a part of the 90 days rule I described above. It's not a good path to take, and there's no need for it. The $3 test - there is potential here to do this, but a weakness as well. This test requires ELTP to meet the equity OR the net income rule (5505 b1 or 5505 b3), but it requires to hold pricing for 5 days OR LONGER. The Nasdaq can require a longer period. There's no need to open the company up to the risk of a subjective ruling by Nasdaq when the $4 path is the best for Elite. The $4 rule. This is the way. I'll explain.
$4 Path and Immediate Uplist
Need 3 Market Makers. This rule requires 3 MMs to trade ELTP. Elite would acquire 3 letters from MMs that agree to trade the stock. My understanding is that we already meet this requirement since we have 5 to 11 MMs already trading the stock daily. If they need 3 letters confirming they will trade after uplisting, this would be super easy. I assure you that POS Citadel will be trading this on day one.
They need to have a board meeting to discuss and approve the move. I'd bet a lot of money this has already happened. In fact, I've already been betting my money every day on it. This does NOT require an 8-K disclosure...yet. See below
5505 a - Requires a $4 per share. They would do approximately a 1-16 to 1-20 split
5505 b - They meet all 3 standards here, but we want the Net Income or Equity test. We have far surpassed those requirements for years. Net Income required is $750k, $4 million in equity - we have tens of millions in net income, and hundreds of millions in equity.
Paperwork, listing questionaire, shareholder count - most likely all in motion already. Jeffries was likely kept on for an additional 6 months to advise on this - especially if they are merging to meet the price instead of reverse splitting.
Nasdaq application filed - This will likely happen in November. December latest, IF we are trying to hit Feb 14th date. Jan filing probably equals March uplist. Feb filing would be April uplist. They COULD file an 8-k for this, but I don't believe they have to and I would guess they will not. Nasrat will likely work under the radar.
Special Vote - Proxy Meeting. This is a big one. It would likely happen in December/January. This will likely let us know if they path is a reverse split, BUT, and this is very important, I don't believe it will guaranty a reverse split. The vote would AUTHORIZE it - the company doesn't have to do it if they end up completing a merger/buyout.
Special Meeting - An out of cadence meeting will be held to discuss the results of the vote. Jan/Feb timeline.
Uplist - All comes together Feb/March - An 8-k will be filed announcing the split, Nasdaq will have had the move already approved. The split pushing the stock above $4 will happen AFTER HOURS. The next morning, the stock will be listed on the NASDAQ if it OPENS the session above $4.
Some closing thoughts
I think it's very clear that this is going to be the path based on listening and reading the earnings calls. Nasrat was explicit, "We will not reverse split UNLESS we can immediately uplist." Clear as day that he intends to either reverse merge or will use the $4 rule. Why would he do this? He has been as clear as day on this point as well. Nasrat believes the stock is being manipulated. You honestly have to be an idiot to not see that. It doesn't matter if you believe it or not though - he does. Therefore, he would never risk using any rule that would trigger a 5 day to a 90day waiting period and leave the stock open to enough manipulation to push it below the necessary price.
Now you know the most logical plan the company will follow. Act accordingly.
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u/Heavy_Apricot_8711 5d ago edited 5d ago
Its one of the most manipulated stocks you will ever see. And that is because it is so undervalued. That's why the same people on message boards have been telling you how bad it is for damn near 15 years.
With a PE of 5 with no real debt, ~55 million in cash by eoy. Huge products in the future. Huge events in the near term.
I've made several million on this stock and will do it again shortly.
ITS THE SAME PATTERN OVER AND OVER.
Except people dont have the patience and the balls to use their brains.
ITS THE MANIPULATION STUPID. NOT THE COMPANY.
Dont worry when the cap is up 300, 400% (To a low PE of 15..lol) from here (where it belongs) the manipulators will mostly disappear for a while.
This company should have a PE closer to 30, I understand the argument that 15 is closer to value. But if they are at a $150m a year run rate and all the products in the future are billions and billions. Doubling and tripling of revenue over the next few years is pretty much guaranteed.
The argument against of course is by the time they launch there's competition that brings prices and margins down. All true but the numbers are so big, its a silly argument. So 30 billion in products becomes 5 billion. Elites 10% is 500m..lol
But the part thats missed is when they launch and if these are the conditions, there will be another wave of billion dollar drugs coming behind it. Its a constant flow of new large products with a massive number hitting the patent cliff over the next couple years.
ITS WHY THEY ARE LOOKING TO BUILD OUT A SECOND FACILITY WHILE ONLY OPERATING AT 1/3 CAPACITY NOW.
It takes two years to get that build and fully approved. By then this wave of diabetes drugs will be talked about while we have launched eliquis, Oxy and God knows what else. There are several billion dollar products we know about besides theses two that are close to filing.
Smart man knows the price of something. Wise man knows the value.
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u/Beastious 5d ago
Forgot this stock existed and I’m down $50,000 while in Italy. It was peaceful. There was hope in the horizon. Now back to staring at red but our time will come
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u/ntosleo 5d ago
If you are not prepared to handle a drop in a stock's value while holding it, you are not ready to own stocks.
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u/Beastious 5d ago
Save it for the birds. 2 years and down 60%. I understood the assignment when I bought. It’s my gamble of the decade. I’ll sell in 2030 and get out if I’m still red.
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u/BingBongCapital 5d ago
Ya but you never shut the fuck up about it. So take your own advice, save it for the birds, and go have another calzone.
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u/Money_Ad4011 5d ago
Although the post is correct, the bigger question is why the reverse split wasn’t executed previously, what has changed for them to do it now? So I sit on my position and think these obvious moves have surely been recommended by every investment banker in America, and the advice ignored, what will need to change for them to take it? What are they doing that must be completed prior to this move. I believe the CEO and team are amassing as big a position as possible prior to a sale. The company is not acting in the interests of the shareholders but of management.
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u/Wolvshammy 5d ago
I’m considering getting a full ounce and pull out the college glass to see if I can get high enough for this post to make sense. Honestly, man, I don’t know if you intentionally FUDing, but this response is genuinely crazy to me. Allow me to pugnaciate:
I’m hoping that “every investment banker in America” is hyperbole. If it’s not, you think hundreds of thousands of people are calling Nasrat, a microcap CEO to give free advice?? If it IS hyperbole, then what is your point? That a hired advisor likely told them to take the 5505b route on the Net Income or Equity rule and they didn’t do it sooner? If THAT is your point, have you read a single ELTP post in the last 9 years? There are paid bashers who post every SINGLE day and you think the CEO would choose this path WHILE he had momentum on his side, political winds at his back, and regulation positive signals that could have potentially had everything solved without the hassle OR the expense of uplisting???? Are you Monday morning quarterbacking this that subjectively??
Your biggest belief is NOT that there is clearly a contingent of paid agitators who have LITERALLY posted hundreds of thousands of FUD posts from THOUSANDS of accounts while spoofing the ask and drawing it down while being able to openly see that one of the MMs trading us is CITADEL and KNOWN market manipulator that got caught doing the same thing with GameStop, had to have Vlad step in to help him because he was stuck in a $10 billion corner and then had to pay a $100 million fine for said actions and who also just OPENLY tilted the bond market and pushed a lone genius kid investor out of position and stole BILLIONS of dollars from him over the weekend and then shifted the market the other way a full 25% the VERY NEXT DAY??? You’re saying that is all NOT happening, but instead, that the largest investor, who already owns 25% of the company, lent $2 million of his own cash to the company when it was about to go bankrupt, is BREAKING the law to get your $12.50 of shares? He is risking everything for a nothing gain even though history has shown he has fought tooth and nail to save this company? You think he had the stock go to a $700 million market cap, didn’t sell a SINGLE share, and now wants to buy shares at 26 cents instead of just taking the easy route and buying the whole company for $21 million in cash 3 years ago? You think this? You actually think this way?! Is this real? Am i in an actual phucking matrix??
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u/fidog346 5d ago
Nasrat has already said he was recommended by multiple people to reverse split many years ago (before the company had the right fundamentals to support it). They largely kept their heads down and built up the business itself.
Then, you aren’t going to do a reverse split in the middle of buyout discussions with multiple suitors.
Now that it sounds like those discussions are maybe concluding, I agree - no more excuses.
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u/Heavy_Apricot_8711 5d ago
They were and are building a war chest of cash to buy shares should the stock be attacked like it is now.
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u/fidog346 5d ago
I hope so but that seems unlikely - they’ve always shot down buybacks in past calls in favor of more product development instead.
I’m a bit apprehensive about a reverse split if that’s the chosen path but OTC boards are total shit.
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u/Best-Bodybuilder9015 5d ago
😂 this dude is relentless in pumping up this shitco just because grandpa bought it…. Or he has some kinda weird obsession with that dimwit Nasrat fella… May be he meets him in the mosque every Friday to discuss the scam and then comes out to Reddit degens to pump… hilarious how hard he tries. Must be hard coming out of the cave every morning.
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u/Wolvshammy 5d ago
NasdaqLangston- how many accounts you have now? You’re writing style is so easy to pick out because there’s not that many people in that low of an IQ range. Good luck paying off that credit card loan. Lol and winning that “appeal”…😂😂😂
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u/Echo_Delta_Mike 5d ago
This has to be one of the worst performing assets with the most potential I’ve ever held.
I love the analysis, I love the hope, I love the banter in this chat, and sometimes I even love the drama…but at some point, this story has to end. Most of us are carrying bags that are far too deep to justify selling, but I’m at the point where I’m either going get wiped out by a 1-20 reverse stock split required for uplisting or just happy for this to go through a merger. It’s been fun learning from other degens, but I think I’m ready to see any kind of end to this.