Enzolytics Inc (ENZC)

[foxi]

What I find confusing:

- ENZC and Rosetta are both licensing IPF (from the same Zhabilov Trust patent)

- Both products have slightly different compositions. (Why?)

- Rosetta appears to be the partner from ENZC's May 12, 2021 PR about licensing ITV-1 for sale and distribution in various Asian, African and Middle Eastern countries. In that deal, ENZC gets 50% ownership of Rosetta and its future profit, and $1 million cash.

$ENZC
Looks like their international Licensing deal is already underway.

Pursuant to the Agreement, Enzolytics will received $1 Million USD and 50% ownership in the Licensing Entity valued at $8 Million. #ITV1 #HIV #COVID #licensing https://t.co/2kp3nb1159 pic.twitter.com/BwxxgjmVic

— YODL (@YODL17) June 29, 2021

- As part of that deal, Rosetta also invested $2 million in ENZC in exchange for Company Preferred Series E stock. See page 10
https://www.otcmarkets.com/otcapi/company/financial-report/312797/content

- How does this relate to IMPL, where ENZC is a 50% owner, formed on Feb 22, 2021? The connection is through ITV-1. The partners are supposed to be "funding" EMA trials of ITV-1. See page 10
https://www.otcmarkets.com/otcapi/company/financial-report/312797/content



So it looks like there's money, shares, ownership stake and accounting details flying absolutely everywhere. The whole thing strikes me as oddly obfuscated.

I don't know how much E stock the May 12 partnership gives Rosetta, but Page 3 of this filling shows 2.5 million restricted outstanding series E with par value .0001 as of 9/30/21. If these are convertible it'd be good to figure out what's the rate & whether or not they've become unrestricted since September. Also ENZC can authorize at least 7.5 million more series E so it'd be nice to know if Rosetta will be getting any more in the future from this or other deals? Especially if they're going to do any conversions.
https://www.otcmarkets.com/financialReportViewer?symbol=ENZC&id=311215

I wonder if some of the dilution is Rosetta raising capital to sustain IPF production once Enzolytics IPF Immune launches in the US, and ITV-1 production once that product launches in Africa. I'm not an accounting expert but my layman's POV is that Rosetta could be converting/diluting and keeping some of the bookkeeping in its own books instead of ENZC's.

Any selling by Rosetta may also funnel money back to ENZC through the ownership or profit sharing partnerships, which isn't necessarily a red flag, but maybe so if it's being used to get around any US market restrictions vs ENZC selling shares into the market directly.