Enzolytics Inc (ENZC)

[foxi]

Catpole, I took a few minutes to write up a more positive scenario. This is obviously very speculative, but just like the more serious cases, it's within the realm of possibility. Ultimately, however we dice it, Biogenysis and Virogentics must create tangible value for the investment to succeed.


Suppose ENZC announces game changing news within the next six months.

If the SAGA deal isn't finalized yet, speculation about the deal and the dividend could create uptrends for both ENZC and SAGA. But for ENZC in particular, since ENZC would still own its now-proven game changing IP, plus shareholders could anticipate the possible dividend.

If the SAGA deal closes, the ENZC share price that allows investors to capture the dividend could immediately become ENZC's new floor. SAGA could maybe issue the 45M shares for the acquisition as Class B Common shares, which are not traded on Nasdaq. (Only Class A Common are traded on Nasdaq.) This might improve SAGA's market cap calculation if the Class A O/S stayed fixed, but there was incoming value from ENZC, pushing the SAGA share price higher.

If the game changing news was exceptionally good, SAGA's share price might continue increasing indefinitely as Nasdaq investors tried to get in at the perceived bottom. The SAGA uptrend might be further amplified by its low float if Class A O/S didn't grow much. This could then drive ENZC's price higher as the opportunity to lock in $10 dividend shares would become even more significant. The hype could feed itself.

Eventually it would be dividend time. The Make-Whole Provision wouldn't produce any additional shares because SAGA shares would be trading higher than $10. But there would have been good trading in both tickers, enough time for people to enter or exit positions as they saw fit, and a continuing uptrend as Biogenysis and Virogentics continued to deliver strong value.

At some future date, the 45 million dividend shares would enter the SAGA public float as Class A shares, and some people would take profit. But if the company was still on an upward trajectory with exciting developments in the pipeline, many investors might stay long. Even if there was an X-years lock-up period for dividend shares, if there was a long term uptrend, investors with restricted shares could stand to profit eventually.

On the ENZC side, after the dividend, the share price might plummet. ENZC might fail to start a profitable business with Robustomed, not have the funding to pay their OTC registration fees, and declare bankruptcy. Not necessarily a bad thing if it eliminates all liabilities and all share classes, including the gazillions of Preferred A through F, and Robustomed's $26M+ of outstanding debt. No more debt, the product works, people can invest on Nasdaq, the old ENZC team is still at the helm, the future is bright.



https://www.otcmarkets.com/otcapi/company/financial-report/376167/content

During the six-month period between the close of the transaction and the Make-Whole calculation, the shareholders of Company E will be able to sale or acquire additional shares of Company E. The holders of common shares of Company E will be entitled to their proportionate share of any shares required to be issued under the Make-Whole calculation,