Timing - I've gone through the filings and here's my take on it. Of course, its speculative but figured you'd be good person to bounce some ideas. I totally agree that we need the river card Q3 to put the puzzle together. I am nonetheless convinced of these next few points;
1) I think the dilution already happened from July - November. If you look at June 30th filing, you see O/S was at 1.5B. We went from 1.5B to 2.75B in a matter of 4 months at the sub pennies level. Not only were these shares diluted, but were sold into the float on our first run to 0.02. I believe this for two reasons;
A) OTCM updated in October showing the float/OS increase substantially, and;
B) We had unprecedented volumes back then which is consistent with diluted shares being sold.
2) I don't believe any significant dilution has taken place between November - til now. Charles did state they had an agreement to hold off on converting notes for 30 days. This implies that there were still notes left; however, I speculate it was not a significant amount considering A/S is at 3B and OS is at 2.75B. At most, 250MM could be diluted. I nonetheless suspect they agreed on a 30 day grace period to work out the loan repayment via cash through other sources. Probably the same funding that secured their operations at TAMU.
3) We broke our $0.07 support level on December 21st which was consistent with a previous posters comment that he received a letter from Charles stating he could convert into common shares roughly at $0.04. Based on total start-up funds this would be a maximum of 16MM share which is only a drop in the bucket. Perhaps this was some shares hitting the float we experienced yesterday setting off the panic. Again, the volume the past two days are NOT consistent with what you expect when shares are being diluted; however, it was enough to trigger panic sellers believing it as such
4) MOST IMPORTANT; I believe this drop in price was mostly driven by retail. ENZC has not had very good volume when compared to TSN*, SFO* or other stocks. At low volumes, it is easy to manipulate price and you see wider spreads/greater volatility. A great example was today where the stock price dropped 25% from $0.052 to $0.041 on ONLY 1.7MM shares in the first 5 minutes of trading. That is NOT the sign of dilution, but rather the sign of some very naive traders panicking and taking a 25% hit for no reason at all. Well, these traders believe dilution is taking place when its not, as it has already happened and are instead fulfilling their own prophecies of driving price lower.
Conclusion 1: Dilution has already happened, panicked sellers are the primary drivers of the bearish trend.
Conclusion 2: A new support base is formed at 0.038 - 0.04. Double bottom reversal in effect. Prognosis - likely going green tomorrow, continue long-term bullish trend.
