The three-year terms of the financing restrictions were established in late December of 2020, but their effective date was July, 2021. It established a revolving line-of-credit with GEM, whereby the company could access up to $60M of capital by issuing shares at 90% of a preceding interval price to GEM Bahamas. This gives GEM a vested interest in shorting the stock relentlessly to ensure that any conversion would result in maximum share allocation (to them) and maximum dilution (to shareholders). The embedded restrictions severely hampered ENSC's ability to secure alternative financing.
The company has run a razor-lean operation to avoid tapping this line of credit, and has been unable to consider other financing offers while the contract is in effect. GEM has rather obviously been running a ruthless naked shorting operation to ensure that any redemption earns them maximum future profit. The July expiration of this arrangement means no more need for either, and I expected the market rebound to begin in anticipation of this. It appears to have begun; I believe it will continue. And I think the company is going to have a lot to reveal to shareholders about what they've been arranging for when the financial handcuffs come off.
There are a large number of significant developments this company could announce which would positively impact the share price. But this key issue is, I believe, the explanation for both the historic devaluation of the stock to truly absurd levels, and also why no previous runs have been sustainable. Its ending marks a new beginning for ENSC, and in my opinion an historic run when the market re-adjusts.
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Recent ENSC News
- Form 8-K - Current report • Edgar (US Regulatory) • 05/28/2024 12:10:33 PM
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- Form 8-K - Current report • Edgar (US Regulatory) • 05/13/2024 12:10:40 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:40:37 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 02/15/2024 05:19:52 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/14/2024 10:27:47 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 02/14/2024 11:05:44 AM
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- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 01/17/2024 02:56:45 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/29/2023 09:15:30 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 12/19/2023 09:27:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/19/2023 09:24:52 PM
- Form RW - Registration Withdrawal Request • Edgar (US Regulatory) • 11/30/2023 07:37:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/29/2023 02:24:43 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 11/22/2023 05:15:07 AM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 11/17/2023 10:19:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/17/2023 09:15:40 PM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 11/09/2023 10:06:54 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/09/2023 10:02:56 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/09/2023 09:56:33 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 10/30/2023 09:04:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/24/2023 11:59:13 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/28/2023 09:20:56 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/11/2023 12:10:24 PM
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