Enzolytics Inc (ENZC)

[foxi]

Some notes on RobustoMed:

When Sharabura joined as subsidiary President, ENZC said this in its PR:
https://www.otcmarkets.com/stock/enzc/news/Enzolytics-Announces-the-Appointment-of-Steve-Sharabura-as-President-of-its-Wholly-Owned-Subsidiary-RobustoMed-Inc-AKA-E?id=313099

RobustoMed will be initiating a new business model focused on developing international partnership opportunities for medical development stage drug and product companies. Mr. Sharabura will focus on revenue and partnership expansion in key markets worldwide, including specific initiatives in Brazil, Costa Rica and other emerging markets.

So, RobustoMed's business model was to develop international partnership opportunities for ENZC.

From Annual Report - DISCLOSURE FILING AND FINANCIALS 2022 OTC NEW FORMAT published 4/26:
https://www.otcmarkets.com/otcapi/company/financial-report/366963/content

RobustoMed received initial funding on November 12, 2021 for the implementation of its business plan to develop international markets for the Company’s products in Central and Latin America.

I don't think RobustoMed's current business plan is going to be relevant if "the Company" (ENZC) sells all its products and IP to SAGA.

Unless I am mistaken, Robustomed also houses $26M+ of ENZC's old convertible debt, which could be a major hurdle getting a new business off the ground. I don't imagine SAGA will assume the debt, if they structure the acquisition as an asset sale.


See here for more notes:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172320339


From Supplemental Information - Supplemental Information published 7/11:
https://www.otcmarkets.com/otcapi/company/financial-report/376167/content

ENZC will continue to be listed and traded on OTC Markets after the close of the proposed transaction subject to OTC Markets listing rules. ENZC remains committed to spinning-off RBMD into a separate public entity.

I'm not a lawyer, but I think ENZC more or less has to say this to avoid new litigation for things like "tortious interference with contract". Shareholders (especially Preferred classes) and lenders might feel that ENZC was selling all its assets in order to avoid repaying its debt.

Which makes this statement from the same disclosure feel a little shaky. With the intent of having no remaining assets or operations, how would ENZC be able to repay its debt?

After the dividend to Company E shareholders, there would be no assets or operations in Company E, but management would be able to purchase new operations or develop other products that would be the assets of Company E. The Company E common shares would continue to trade on OTC Markets as a new business strategy is implemented.

If any such litigation was to happen, it would only happen after an official agreement was produced. Will be interesting to see what transpires.