Enzolytics Inc (ENZC)

[falon]

Actually not.

With most SPAC deals different entities getting certain percentages of the newly formed company.

This isn't your run of the mill SPAC deal so it is really hard to speculate as what will occur.

List of Companies That Went Public By Merging With A Special Purpose Acquisition Company ('SPAC')
https://stockmarketmba.com/listofcompaniesthathavemergedwithaspac.php

I look at a lot of companies that went the SPAC route and found mixed results.

Most SPAC trade around $10 and soon after the deal closes a lot of them drop significantly. Some recovered some didn't.

MoonLake Immunotherapeutics (MLTX) completed SPAC on 4/5/2022 and closed at $13.25.

Closed on 5/5/2022 at $5.73

Closed on 11/5/2002 at $8.49

Closed on 4/21/2023 at $21.67

EQRx, Inc. (EQRX) completed SPAC on 12/17/2021and closed at $8.29

Closed on 1/18/2022 at $6.28

Closed on 7/18/2022 at $5.00

Closed on 12/16/2022 at $2.18

Closed on 4/21/2023 at $1.85


The bottom line is the SPAC gets you to a higher exchange or to become a public trading company however companies must perform, must produce, must provide results.

ENZC was already performing, producing and is on the verge of providing significant results with the deployment of ITV-1 therapeutic to Africa.

There are many unanswered questions as to how and what will be distributed.

Enzolytics, Inc. (the "Company" or "ENZC"), a drug development biotech company, and Sagaliam Acquisition Corp. (NASDAQ: SAGA) ("Sagaliam"), a special purpose acquisition company ("SPAC"), announced today, April 17, 2023, they have executed a non-binding term sheet for the sale of Biogenysis, Inc. ("BGEN") and Virogentics, Inc. ("VIRO"), operating subsidiaries of Enzolytics. The value of the transaction is $250,000,000 The definitive agreement is being finalized with an expected closing date of May 19, 2023.

So $250,000,000 is the value of the transaction.

Sagaliam Acquisition Corp Market capitalization is $157.53 million so they are around $100 million short of the $250 million.

A lot of the deals I look at were broken out by different entities getting certain percentages of the newly formed company.

It is possible we get a percentage to cover the $100 million.

The transaction, once completed, will provide BGEN and VIRO with significant additional capital to continue their development and expansion of existing and future technology platforms. In addition, Sagaliam expects to raise additional capital through a private investment in public equities ("PIPE"). The anticipated capital raise from the PIPE is expected to be primarily used by BGEN and VIRO to pay transaction-related expenses and fund the clinical trials of ITV-1, marketing of IPF Immune™, production of fully human monoclonal antibodies (mAbs) and continued advancement in its proprietary technology involving the application of Artificial Intelligence (AI) in therapeutic discoveries and production.


The mAbs and AI wasn't in the original patent license agreements for BGEN and VIRO. Heck AI wasn't even on the radar.
They are there now as they are specifically noted.

Now for the dividend.

ENZC would like to provide additional information and clarification regarding the recent announcement of the sale of Biogenysis ("BGEN") and Virogentics ("VIRO") to Sagaliam Acquisition Corp. (NASDAQ: SAGA) ("Sagaliam"), a special purpose acquisition company ("SPAC"). After any required approval of the transaction by the various regulatory authorities, the Company intends to issue a dividend of the sales proceeds to ENZC shareholders on the date of record of the declared and approved dividend. ENZC shares will continue to trade on the OTC PINK Market. The sale transaction will not interfere with the trading of ENZC stock. Regarding the definitive purchase agreement, it is being finalized with an expected execution date of May 19, 2023. The previous release stated the transaction was expected to close on May 19, 2023, which was an error. Once the transaction document is finalized it will be subject to regulatory approval.

What will the dividend be?

Cash, stock or a little of both.

Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company's dividend is decided by its board of directors and it requires the shareholders' approval.

Cash is straight forward.

I suspect or should I say expect ENZC will be giving shares of the newly form company to make up for the $100 million shortfall and those shares should be passed on to the shareholders.

Interesting, Timely, Accurate