Enzolytics Inc (ENZC)

[God_Father]

There is a lot that I agree and some that I disagree with that post.

Yes - many companies have convertible notes. Yes, even ENZC has convertible notes. If you recall a recent PR, they managed to get convertible note holders to agree and cease converting for a 30 day period. Convertible notes can be set up in multiple ways, but it all depends on the legal agreement with each individual note holder.

I.e., ENZC could have set up the option to pay in cash instead of securities (shares) before the note matures. I believe this is why many note holders agreed to cease converting shares for the 30 day period.

Also dependent on the agreement structure, some notes allow for conversion at the minimum price of the last X (e.g. 10) trading days. Which in our case would be 0.008.

With the $250K in funding from the first tranche, they said they would be using this to pay off debt. We also have another $250K coming our way once the merger is finalized. When I spoke with Harry, he mentioned working with an investment bank. What I believe will happen is that most of notes will be paid off with $, and there will be a loan agreement with the bank instead, NOT in the form of convertible notes.

Best of luck,

$ENZC