Enzolytics Inc (ENZC)

[foxi]

Glad you found it useful!



Since then:

- The filings missing the (Unaudited) disclaimer were indeed still unaudited at the time.

- The dates have now passed for exercising warrants (converting them to common shares) from agreements made in 2020. It appeared there were Series C/warrants/derivative liabilities that could be exercised no later than November 2023 leading to what I figured were a possible 188,215,600 common shares. That doesn't mean any converted shares were sold, but people may have converted/exercised instruments recently.

- Some or all of insiders stock options would have expired in October 2023. These were worth an unknown number of common shares.

- Insiders' three-year employment contracts would have expired in October 2023.




Some of my opinions have changed since I wrote that post. I currently don't hold any shares in ENZC.

There's controversy about how the SAGA and ENZC deal was structured, what information was known by both parties at the time, and imo neither company is being transparent with shareholders about the controversies.

I'm not following this as closely as I used to, but off the top of my head I'm aware of:

- SAGA potential NASDAQ delisting for a long list of violations.

- ENZC's latest filing showing uncertainty in the Going Concern.

- An ongoing lawsuit about voting rights, due to ENZC receiving shares as payment for an acquisition that occurred without a required vote, and then claiming those shares constituted a quorum to secure its own acquisition.

- ENZC telling a court that it didn't believe itself to have a fiduciary duty to its own shareholders.

- ENZC no longer providing any news on progress and developments (good or bad) for VIRO and BGEN by saying SAGA is taking over investor relations; while it's unclear the true status of the SAGA deal and one of the reasons SAGA getting the delisting letter is "ongoing failure to disclose material information and timely file periodic reports".


Comparisons with a couple other tickers come to mind.

As I recall, HMBL's share price plummeted due to toxic lending as debt conversions came to fruition. In ENZC's case, there shouldn't be debt conversions pending - but massive share selling by any party might create a similar effect on ENZC's chart. If insiders decide the jig is up with SAGA, there are various ways they might try to cash out before disclosing the development to the market. If so, ENZC's share price might not find the expected support as it falls through what should be critical support lines.

MINE had a pattern of making vague, hard to prove claims, unverifiable operations in foreign countries, using people's likenesses without their knowledge, etc. Eventually the lies caught up with them, and that ticker got suspended. While it did resume trading two weeks later, the price instantly cratered and no one had time to mitigate their losses. ENZC seems to have a bit more substance (haha) than MINE, but there are still enough similarities I'm personally not even comfortable swing trading ENZC currently. There was no warning for MINE before the suspension hit, but a lot of red flags in the days prior.

GLTA and Merry Christmas <3


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