Enzolytics Inc (ENZC)

[29YEARINVESTOR]

An issuer should reflect the conversion in its financial statements only once the conversion has settled and the rights under the preferred stock have been extinguished. In certain circumstances, there may be additional accounting required between exercise and settlement of the conversion option.
When registration with the SEC is not required, publicly traded companies must still make information publicly available pursuant to Rule 10b-5 under the Securities Exchange Act of 1934 and pursuant to Rule 144(c)(2) under the Securities Act of 1933. OTCMarkets offers the Alternative Reporting Standard for companies who provide material information publicly to investors.
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https://www.investopedia.com/terms/r/rule10b5.asp

Several adjustments to the use of the affirmative defense doctrine by insiders became effective on Feb. 27, 2023. Insider trading under these rules means there is a plan to sell securities by officers, directors, and others with access to MNPI.
Rule 10b5-1(c)(1)—Mandatory Cooling-Off Period
For directors and Section 16 officers wishing to trade their company’s stock, there is now a mandatory cooling-off period. Section 16 is a rule within the Securities Exchange Act of 1934 that spells out the regulatory filing responsibilities that directors, officers, and principal stockholders are legally required to adhere to.

The new required cooling-off period covers the later of: 90 days before trading under a 10b5-1 plan can be activated, or two business days after disclosure in a periodic report of the issuer’s financial results for the quarter in which the plan was adopted.

The Bottom Line
Rule 10b5-1 allows insiders to sell company stock by setting up a predetermined plan that specifies in advance the share price, amount, and transaction date. The insider selling the stock and the broker carrying out the transaction must certify that they are not aware of any material nonpublic information (MNPI).