Enzolytics Inc (ENZC)

[foxi]

Pugsieboy:

WHEN THOSE NEWLY ISSUED AND RESTRICTED SHARES GET A STATUS CHANGE TO UNRESTRICTED, THEN THE INSIDERS AND THE LOAN SHARKS WHO HAVE THE EQUITY SHARES CAN THEN DUMP/SELL THOSE NEW SHARES ONTO THE OPEN PUBLIC MARKET (THE FLOAT)...
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168322440

The quotes below come from ENZC's recent OTC filing "Supplemental Information Relating to Share Issuance History of Enzolytics, Inc. Common Shares" https://www.otcmarkets.com/otcapi/company/financial-report/323613/content

With each increase in Float the total Restricted shares decreased in the same amount.

Which sounds like what you have been saying, rephrased.

ENZC goes on to say:

As of December 31, 2021 there were 451,289,565 restricted shares remaining of the 2,797,935,953 originally issued prior to October 15, 2020.

So this filing is still unaudited, but ENZC would be in hot water if they lied about these numbers in a public OTC filing.

Approximately 71 million of these restricted shares are part of a lawsuit filed by the Company. The remaining 380,289,565 have met the SEC requirement for removal of the restrictive legends but have either not elected to or been unable to obtain an opinion letter acceptable to the transfer agent or are held by Officers and directors of the Company.

So in all of 2021 and so far in 2022, the filing claims that only 380,289,565 shares from "the 2,797,935,953 originally issued prior to October 15, 2020" could have been flipped to unrestricted in 2021-22 and entered the float.

We do *not* know how many that were flipped to unrestricted were held by their owners at the time and later sold. This could have been any number of the 2,797,935,953 - 451,289,565 = 2,346,646,388 unrestricted in October 2020. I don't imagine everybody liquidated as soon as they flipped to unrestricted shares; so these guys probably contributed a lot to the bearish pressure last year by selling off slowly.

Your screencaps show that the float was around 1.67 billion in September 2020. So about 2.35 B - 1.67 B = 680 million shares are unrestricted and part of the O/S, but not part of the float as of September 2020.

So unless I screwed up this analysis, it looks like anywhere from 380 million to (380 M + 680 M =) 1.06 billion shares could have entered the float since September/October 2020, potentially resulting in price dilution and an increase in float.

This also somewhat validates your definition that shares don't automatically enter the float just by becoming unrestricted - they must actually be sold. Otherwise the float should always match the unrestricted count in the O/S, which it clearly didn't by a factor of 680 million in October 2020. So the assumption that the growing float indicates people are actively dumping shares, seems correct to me.




Now, according to this latest filing (6 months ago) ..
https://www.otcmarkets.com/otcapi/company/financial-report/311215/content

..there have been hundreds of millions of new Common, Series A B C and E issued since October 2020. The Series shares can be converted to Common but as of this latest filing they were still Restricted. I don't know if they can convert Series to Common if they've exhausted their A/S, so I'm curious about share restructurings such as increasing the A/S after a reverse split to make more 'room' for future conversions. Otherwise the shares insiders issued themselves (equal convertible to the entire current O/S) are not a risk of conversion for now. (There's no A/S left to convert into.)