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Merganthaler vs. Enzolytics - DISMISSED
https://www.ded.uscourts.gov/sites/ded/files/opinions/21-1163.pdf
Well, well, well. Look what I found. On August 17, 2022 (last Wednesday) A key lawsuit for Enzolyics completely dismissed by the court. Looks like a big win for ENZC...
Respectfully, there’s a lack of understanding TA's and how strongly they are regulated. The company cannot just make up new share numbers. It doesn't work that way. All share changes have to go through FINRA. I think you've been mislead.
Is it my imagination, or is Harry finally kicking Savov's kazookie?
It’s very clear based upon today’s announcement, plus an examination of previous filings, that the key discovery here is that ENZC has protected a total of 18 conserved target sites.
Looks to me like this is affectively planting the flag on those 18 sites. If other companies want to attack those sites, they would have to approach ENZC for licensure.
Oops
Let's talk valuation!
First of all "3 years" is completely misleading. As someone else said, it's been 18 months since Oct 2020.
But, the poster is (partially) correct. It's not revenue, but PROFIT, that is the main driver of stock valuation. There are many others - revenue, consistency, IP protection, key executives, key strategic customers/partners, the discount rate of the general economy, the inflation rate of the general economy, the breadth of the opportunity being pursued, the competition, whether the company is a takeover target (Twitter), whether the company is the subject consumer action (Disney),
Also, there is the 2nd order issues of momentum of revenue, momentum of profits.
With ENZC, the issue is - do they have something? If they don't, the stock is way overvalued. If they do, the stock is way undervalued. That is why smart investors shouldn't care about small price moves here and there, but about a focus on whether the IP has value. All revenues and profits and ultimately, the stock price, will be a function of that issue.
My guess, the management are kind of newbies to the public disclosure requirements.
Happy Passover! And Happy Easter to all the Christians!
Chag Pesach kasher vesame’ach!
Mazel Tov!
Yes, this is true.
(Although, I'd like a little love too!)
Agreed, it's sup-optimal.
My guess: on-the-job training. The principals are not super experienced with public companies...but, just a guess.
That's true, it's not mandatory.
But, given all the attention on the matter, I would be greatly surprised if an announcement was not made concurrent with the release of the financials.
These financials are obviously not audited. There would have been a company press release. In my opinion, it should be coming soon. Patience.
Rely on board expectations, instead of ENZC statements?
Haven't investors learned to not set false expectations based on non-company (negative OR positive) opinions? Wouldn’t it be better to use info provided by the actual company statements through a press release?
Forget innuendo , forget tweets, focus on statements from the company.
All outsiders are trying to do is weave a web that lets them come back and claim clairvoyance on statements/milestone THEY make or establish. Then, treat their statements as official company statements and positions.
"Securities Exchange Agreements
On November 16, 2020, the Company entered into Securities Exchange Agreements with two investors. Under the terms of the Securities Exchange Agreements, the Company issued 941,078 shares of its Series Convertible Preferred Stock and 188,215,600 warrants to purchase 188,215,600 shares of its common stock in exchange for payment of various notes and accrued interest totaling $470,539 to these investors. Each share of the Series C Convertible Preferred Stock is convertible at price of $0.005 anytime at the option of the investors"
(sigh). Like I said, old news.
Obviously not everyone reads disclosures. The 12/31/2020 disclosure lists each individual that was issued shares as part of the BioClonetics transaction. All shares issued after that had to be listed in the disclosures. The issuance of the Series E was in the 9/30/2021 disclosure statement and the Series D are associated with the crowdfunding debt assumed from BioClonetics. All stock designations are filed with the Secretary of State and can be viewed there.
Old news. These shares have been issued since the transaction and were what was used to pay for the IP, monoclonal antibodies, AI, 17 new patents. They have been available to be converted for over a year and a half.
What's the point? Looks like the audit had more to do with it than any claim about secret SEC access. LMAO.
To me, this just proves that management has a (welcome) long view of the value of ENZC as they took shares (not cash) for all their patented antibody and other cutting edge technology products.
It's actually even better than that.
Because at any trade show, there are going to be a percentage of attendees who are NOT good candidates to purchase any attendee's product (for a myriad of reasons).
Oh please, this is frankly desperation
Dyno, thanks for showing how idiotic this is.
And, in all cases the real question is: does the IP have value? If so, none of this matters.
Products: ITV-1, IPF Immune, AI
Successes: partnership with Intel, Samsung, successfully filed 20+ patents. FDA letter on IPF Immune
Results - I will agree that a drug development company will necessarily be light on results early on.
The value of the company is in the potential of the IP. Nothing has changed.
If we do see some results, we all know the price will skyrocket.
Wow. That might be impactful.
Help - would that mean that the 71 million would be removed?
Not sure.
The 71 million is what's under dispute with Savov.
Current market cap on Yahoo = $167million.
Market cap just prior to merger = $270,000
At it's peak, 2.7 billion outstanding shares @ $0.829 = $2.23 billion market cap.
Probably a bit overvalued. So, then: what is ENZC worth?
What matters to smart investors is the following: What is the likelihood of the IP (either ITV-1, the monoclonal antibodies, IPF Immune, the MS drug, the AI, etc.) somehow hitting and what would be the financial benefits of such a hit?
Frankly, if the IP is successful, the $2.23 billion is a bargain. If it is not, the $167 million is overpriced. But, it's very clear that discussions of minor problems / successes in IPF Immune, or minor changes in O/S or Float, or each individual tweet or PR just don't matter.
Everything else is just noise.
Let's please use data in context:
Price in Oct/20: $0.0001
Price in early/21: as high as $0.829
Current Price: roughly $0.07
Is price up 70,000% since merger? Yes
Is price down from peak? Yes
15 trading days prior to peak, the price was $0.11
Two months after peak, price was $0.15.
I will stipulate that pricing got a little crazy for about a two month period. But there is no doubt that since merger, stock price is up - BIG TIME.
Getting emotional over small issues. YES
I will reiterate. If the intellectual property of ENZC is valid, a six cent, seven cent, eight cent price is way way way under valued. If there’s nothing there, it’s way, way, way overvalued.
When looked at it from this perspective, all of the discussion about which retailer is carrying IPF Immune, or whether or not there has been some minor [less than one percent] changes in capital structure, doesn’t matter.
Let’s face it: the stock is incredibly cheap if you believe in the IP.
There is ample evidence to suggest that the IP is “golden“
Let's face it - getting revenue is a good thing.
But, the big thing will be the ITV-1. No shade on the revenue; it's a start.
I wonder if the pessimists are trying to knock the stock down to buy later....Hmmmmm
Happy about the revenue.
About time. Anyone have Information on the Africa stuff? To me, that is the mother lode.
Does anyone have more info on the MS situation?
That sounded like a terrific announcement.
I’d love to find out more.
https://www.biospace.com/article/releases/enzolytics-inc-receives-official-filing-receipt-for-multiple-sclerosis-patent-application/
We have answered all these before:
Dilution = zero (since Oct 2020)
Float, only increased >1% in last six months. Only capable of increasing an additional 4% or so.
Zero indication that Livingston has had anything going on since merger (Oct 2020), AND there is ample evidence that they sold all their shares within hours of getting them.
Not sure what poster is talking about, but I assume that this is a reference to Savov's efforts. I think we can all agree that Savov and ENZC are not on good terms right now.
Uplisting is dependent on audit; float is irrelevant. What matters is market cap
And regarding complexity,
A refresher of what might be involved and how difficult it is.
https://explorecourses.stanford.edu/search?q=accounting&view=catalog&academicYear=20102011&catalog=&page=1&filter-coursestatus-Active=on&collapse=
Hey thanks for agreeing!
"The audit is NOT voluntary if you want to be uplisted, it is mandatory." That is 100% true.
ENZC desires to be uplisted, which is a voluntary choice (and one of which that we should all approve). The audit is a prerequisite, and hence another voluntary choice.
We can also agree that everyone wishes it to be done sooner.
And, we agree that the auditors have not changed nor filed any disclosures indicating problems.
We can agree to disagree on the complexity issue. Sadly, accounting precepts are revenue independent. The same standards apply for small and large companies.
Merger, patents, 251(g), reverse merger, debt exchanges, reverse merger acquisition and changing accounting standards. Seems rather complex to me..
So, all these issues were addressed in my original post:
1) Audit was not necessary, was voluntary
2) Audit is a precursor to up-listing
3) Situation is very complex
4) Auditor is unchanged
5) Auditor and company have not issued disclosures with any problems, indicating all is well.
And the criticism is that a goal is not reached, but still could be hit?
Laughably transparent.
This is an important week for ENZC and its shareholders. I have been doing some research and discovered that since ENZC can't file for an up-list until the audit is complete means ENZC continues to be subject to the OTC rules for financial filings. This requirement is for the reports to be filed using Alternative Reporting Standards which does not require the financial statement to be audited. An SEC attorney's opinion letter is required.
Since ENZC brought the filings current (Early 2021) right after the transaction with Bioclonetics (November of 2020) they have not experienced a yield sign other than the one period where the OTC website or ENZC posted a financial report as a analysis report (numbers were filed just in the wrong place). I would believe ENZC preventing a yield sign by filing the OTC report (as they have been doing since 2017) would take precedence over an audit that has no deadline. Once the up-list is complete and accepted on whichever market ENZC up-list to, ( which cant be filed until the audit is done) then the future reports will have to be audited and reviewed by the PCAOB auditor.
ENZC never set a date for completion of the audit, only stated they were working on, making progress or answering all question by the PCAOB auditors with no conflicts developing. They even hired another PCAOB firm to assist with the audit ENZC requested this audit and it was not something required by a governing or regulatory body. ENZC is providing value added by the up-list to shareholders voluntarily. It isn't somehow "derelict" if it isn't done on a quick turnaround. The naysayers like to try to focus members of the board on that supposed dereliction, rather than all the progress being made.
The two companies have never been audited and voluntarily subjected both companies to three years worth of audits for the benefit of all shareholders . The creation of the combined entity was the result of several technically complicated transaction such as a combination, merger, reverse merger acquisition, a 251(g) merger, debt exchange and a complex business combination of two biotech companies. Their products are on the cutting edge of the medical field technology and have been recognized by technology leaders Intel and Samsung.
Because of various possible interpretations of GAAP guidelines, the auditors and company changed accounting methods for the transaction in mid stream, which had to cause a great deal of work changing from one method to another. Everyone is apparently on the same page now and seem to be satisfied with the way it is going. Proof? No conflict with the auditor has been reported by either ENZC or the auditor which would be required by the AICPA and OTC.
When I think about all the time and effort that has been expended discussing an audit that is not required for anything but an up-list (which is important for ENZC and Shareholders) it reminds me of the kids stories: Chicken Little or the Emperors New Clothes. We all seem to want to believe the fiction over the facts.
Looks positive in that IPF Immune seems to have been met with a level of enthusiasm. 27 interested parties is pretty good for a trade show.
I am very curious if/when there will be agreements completed. I am also curious about the follow up procedure is for follow up with the interested parties (presentations, negotiations etc.)
We've been over this many times.
Here we go again:
Price in Oct 2020: $0.0001
Price in early 2021: as high as $0.829
Current Price: roughly $0.08
Is price up 80,000% since merger? Yes
Is price down from peak? Yes
15 trading days prior to peak, the price was $0.11
Two months after peak, price was $0.15.
We can all agree that there was a brief period when pricing got a little crazy. But we can also agree that since merger, things are up - BIG TIME.
Some additional information:
Balance of restricted shares is 484,339,585 of which
-337,200,000 (70%) shares appear to be owned by officers and director
- 71,200,000 (15%) are in dispute with Savov in a lawsuit that the company appears to be prevailing
- 30,000,000 (6%) were issued from subscription agreement to 3 entities that the 144 aging process will be up in August 0f 2022
- 24,905,880 shares that were issued to other Bulgarians probably issued in association with the 2014-17 clinical trials and others that have not aged.
All of this information is in the OTC Filings. One just has to know what to look for and have a calculator.
There does not appear that any new shares will age into the float until the third quarter of 2022. With 70% of the restricted shares held by officers and 15% tied up in litigation there is only 15% of already issued common shares even possible to come in the float and in my opinion only 30 million are probable.
It was posted on March 31
https://www.otcmarkets.com/otcapi/company/financial-report/325767/content
Top of Page 3.: Float up to 2,313,596,368 from 2,288,596,368 - 25 million increase (<1%)
Time for all of us to update the cut-and-paste. ;)
Silliness. If you have ever worked for a large corporation
you would know that they are about the farthest from omnipotent as you can get and big government is 1000x worse.
The Dilbert comic strip is wildly successful because of that very issue.
DEBUNKED!! The float grew less than 1% last quarter
25 million shares out of 2.7 billion.
I stand by my statement, even under your ridicule.
ENZC is an absolute bargain if the IP in general, the initiatives in particular, is/are successful. Like any company, if ENZC creates great products and services, we all succeed.
There is an element of truth in what this poster says, though. The analogy to a casino/lotto is actually partially correct, and partially wrong. Buying any stock, (including Apple, or Tesla or Facebook or Google early on, or any stocks that go down), does indeed have an element of risk.
But, the difference is that in a casino or in a lottery, there is no tangible positive outcome. The bet is the entertainment itself. The house always wins in the long run.
Under capitalism, and the stock market in general, there are multiple differences:
1) Most parties involved want to see success. The underlying value of the company can grow, It can be a true Win/Win scenario. Casinos and lotteries are Win/Lose.
2) Human beings with agency drive the outcome. There is a management team, suppliers, partners, customers, employees, investors, etc. driving towards success.
3) Outside information differences. In a game of chance situation, there is no way to get special information that can give you insight, without cheating. In a business situation, all actors can legally check for outside information, giving insight as to what's really happening. That is where press releases, financial disclosures, company interviews, legal and regulatory filings ( patent applications!), can be analyzed to confirm progress or struggles.
Are stock market investments risky? Yes. Riskier than bonds? Absent inflation risk, Yes
But, many, many companies create tremendous wealth for investors by creating great products and services.
MAGA, you are right, the audit will be very helpful.
And your reasoning is correct - it's a risk removal issue.
With all the IP and initiatives out there, investors need to look for signs of improvement and signs that risk is being mitigated
The tune has changed
Looks to me like it's clear that there are elements who are trying to drive the price down. Why would anyone think the investors and officers and directors of a company WANT the price to go down? I don't understand the logic. They have paid considerable funds for research, development, audit etc.
Wouldn't they be better off if the price rose?
Look, smart investors know that while there is no guarantee, the price will ultimately be dictated by real life progress. Will the IPF Immune sell? Does ITV-1 work, and can it be sold? Does the MS drug work? Does the AI work? Do the monoclonal antibodies work?
ENZC is a bargain if one hits. It's wildly overpriced if they don't. It's that simple.