Enzolytics Inc (ENZC)

[foxi]

100% of BGEN and VIRO are valued at $450M for the sake of the proposed transaction. That figure only applies if 45M SAGA shares are pegged at $10, or enough Make Whole shares are issued at a lesser trade price to cover the difference.

Enzolytics, Inc. (OTC PINK: ENZC) (“ENZC” or “the “Company”) recently entered into a nonbinding letter of intent with Sagaliam Acquisition Corp. (“NASDAQ: SAGA”) (“SAGA”) (together the “Parties”) to sale its two operating subsidiaries Biogenysis, Inc. (“BGEN”) and Virogentics, Inc. (“VIRO”) in a transaction valued at $450 million.

Very specific wording. The transaction is valued at $450M. The trade value of those SAGA shares could go up or down afterward.

SAGA should have seen whatever details ENZC has been concealing from the rest of us behind non disclosures. That could be a part of the difference in ENZC's current market cap and what SAGA is willing to pay.

I'd like to think the proposed deal increasing from $250M to $450M was because of ENZC forging a new partnership or achieving a milestone, but ENZC themselves told us this:

Also, ENZC and SAGA are continuing to negotiate terms for the potential business combination taking into consideration the increase in ENZC's market value over the last few weeks since the initial disclosure of the transaction. (PR from May 16)

Which was PR'd at the same time ENZC market cap was falling from almost $0.13 back to the $0.05ish levels we saw during the original $250M valuation. $450M would give a better dividend; hopefully negotiators locked it in.


Regarding any dumping of shares:

If ENZC is the stinky pinky share selling scam some traders suspect, ENZC could have been hoping the hype from the recent PRs/disclosures would push this higher, intending to dilute. If the market didn't buy the pump, ENZC might still dump for whatever it can get.

Diluting might also be legitimate business to raise operating cash, or as a backup plan in case the SAGA deal has additional delays/doesn't close. Balance sheet in the last quarterly showed only $156,559 in operating cash at end of March, which wouldn't even cover one month of management's salaries. ($40k/mo cash burn just for the four execs with the 2020 three-year employment agreements. See bottom of page 33)

But how could we confirm ENZC is dumping newly unrestricted shares at all? Shares moving to Unrestricted may be being sold. The float on OTC markets hasn't been updated since March 2022. Trade activity we're seeing could be for many reasons.