$ENZC NASDAQ Is Finally Within ReachWith a mission to provide effective and affordable treatments for infectious diseases, Enzolytics Inc. (OTC: ENZC) has risen to prominence during the pandemic. ENZC stock has witnessed unprecedented interest from investors thanks to its ambitious mission to treat HIV and its unique AI technology. Currently, the company is looking to advance its collection of patents, however, that process requires a lot of cash which it does not have at the moment.
That said, the company could achieve its goal soon as its anticipated SPAC merger with Sagaliam Acquisition Corp. (NASDAQ: SAGA) appears to be only a matter of time after both companies signed the business combination agreement and are currently in the de-SPAC process. Considering the share dividend its shareholders will receive after the consummation of the deal, ENZC stock appears to be a bargain at current levels.
ENZC Fundamentals
Back in April, ENZC and SAGA entered into an agreement where the latter would acquire the company’s subsidiaries Biogenysis, Inc. (BGEN) and Virogentics, Inc. (VIRO), in addition to adopting SAGA Scientific Holdings Corp. as its corporate name. In exchange, ENZC shareholders will own the combined company since SAGA will issue 45 million shares to the company’s shareholders. Out of these 45 million shares, 9 million shares will be issued to the company’s insiders, leaving 36 million shares to the rest of shareholders.
Currently, ENZC has an OS of more than 3 billion. This means that ordinary shareholders are set to receive the equivalent of $.1167 per share considering the SPAC’s PPS of $10. Since ENZC stock is currently trading at $.449, taking a long position in the stock could be a no-brainer as shareholders are entitled to receive the $.1167 per share even if SAGA’s share price drops below $10 after the de-SPAC process.
The reason behind this is that the SPAC agreement includes a make-whole provision which means that SAGA would issue more than 45 million shares to ENZC shareholders if its share price drops below the $10 mark to ensure that they receive $450 million. At the same time, ENZC shareholders will continue owning their ENZC shares after the consummation of the deal.
That said, it is likely that the company could enter into a reverse merger since it would have minimal to no assets or operations as its main subsidiaries would be under SAGA’s umbrella. In this way, ENZC stock could add more value to its shareholders if it secures a profitable reverse merger. However, this remains speculation as the only known fact is that ENZC will remain an active ticker after the merger.
As is, it could be a matter of weeks until the merger is finalized. Currently, ENZC and SAGA are in the first phase of the de-SPAC process where both companies file an S-4 proxy statement with the SEC. This phase usually takes between 2-4 weeks to complete as the SEC sometimes asks the merging companies to clarify certain information in the S-4.
Once the S-4 is active, the merging companies determine a date for shareholders to vote on the merger. To facilitate this, a proxy solicitor is hired to contact the SPAC’s shareholders to inform them of the upcoming vote and to encourage them to participate in the vote. This process usually takes an additional 2 weeks to complete.
The third and final stage of the process takes around 2 weeks and the merging company – ENZC in that case – holds a roadshow to meet with the SPAC’s shareholders to persuade them to approve the merger. If the deal is approved, the merging companies would release an 8-K announcing the conclusion of the deal – signaling the beginning of the combined company’s NASDAQ listing.
Based on this timeline, the deal can be estimated to be complete by late October or mid-November which could see ENZC stock run throughout that period as more investors look to secure the dividend. However, investors should note that the de-SPAC process could take up to several more months depending on the length of the SEC’s review of the required filings.
Technical Analysis
ENZC stock is in a neutral trend with the stock trading in a sideways channel between $.0405 and $.0511. Looking at the indicators, the stock is trading above the 200 MA which is a bullish sign, however, it is below the 50 and 21 MAs which is a bearish sign. Meanwhile, the RSI is neutral at 48 and the MACD is approaching a bullish crossover.
As for the fundamentals, the S-4 filing with the SEC becoming active will act as a major catalyst for ENZC stock since this phase takes the most time compared to the rest of the de-SPAC phases. Considering that shareholders are set to receive a $.1167 dividend per share, going long on the stock at current levels may provide a lot of upside.
ENZC Forecast
ENZC’s NASDAQ listing is now a matter of time after the company signed the business combination agreement with SAGA. As is, the deal could be closed in 6 – 8 weeks which could allow the company to access the funding it needs to advance its patented treatments to pre-clinical studies. At the same time, the deal would add substantial value to the company’s shareholders since they are set to receive a dividend worth $.1167 per share, whereas its share price is currently at $.0449. Based on this, going long on ENZC stock at current levels may prove to be a profitable decision.
ENZC trade ideas
$ENZC - Long Term Play Technical Analysis
Currently trading at $.068, ENZC stock has supports at .066, .059, and .054. The stock shows resistances at .0696, .076, .081, and .091. After a 35% increase, ENZC fell back to its support at .066 before bouncing back slightly.
ENZC’s run was triggered by several strong catalysts and with more news expected soon, the stock could start regaining ground. However, right now ENZC is consolidating and could break out either way. For this reason, traders looking to start a new position should look for a sign of which direction the trend is heading before taking a new position.
Entries
The stock tested the 200 MA two times yesterday, if it breaks out above it then this is a bullish sign, as 200MA break indicates a trend reversal. and investors could enter on confirmation of the breakout. However, if it fails to break the 200 MA, ENZC could fall through the 50 MA and VWAP. I would look for consolidation at its .059 support before taking a position in anticipation of a rebound similar to the 17th. The .059 has proven multiple times to be a very strong area of support, showing that buyers see that price as undervalued.
Trim Levels
$.081 appears to be a strong resistance and investors could take profit leading up to this resistance. There could be a pullback at the .0767 resistance which is another place to trim. A break of .081 could send the stock back above a dime, which could be another trimming level, possibly keeping the rest for a bigger run, if momentum continues
Short Term – 5min
Currently trading at its 50 MA, if the stock breaks through it will likely fall back to its support at .066 or lower. Considering its upcoming catalysts and that the stock typically traded between $.07 and $.09 for most of 2022 – anything below .066 could be an opportunity to add on shares in anticipation of the market’s rebound. As is, .081 is a hard resistance but the stock could be looking to retest it as the MA draws closer for a possible golden cross. Accumulation is currently showing a slight downtick after falling on the 17th. Meanwhile the RSI is at 48, which is cool enough to allow for another run .
Long Term – 1 hour
ENZC experienced a decline in April which led it to its strong support at .054. However, for most of 2022 it traded above .07. It ran up roughly 80% as the company released IPF Immune and introduced its future plans. As the company is expected to release more press releases regarding not just sales and efficacy of IPF Immune but regarding ITV-1 as well, a strong catalyst could push ENZC out of its current channel past $.10 and back to all time highs.
Overall Recommendation
ENZC is likely a long term hold and in light of its plans to begin marketing ITV-1 in several African countries before seeking EMA approval for the EU. Right now, it appears that ENZC could bounce back to old highs as news rolls out. For those willing to hold their position long-term, I believe adding shares below .0597 could payoff once the stock begins picking up more volume.
However, as it consolidates near the 50 MA and VWAP I believe it’s safe to wait for a break in either direction before taking a new position.
ENZC Stock Forecast
At the moment, ENZC stock has a long list of catalysts ranging from plans to uplist to their ground-breaking patents and technology partnerships. The company’s potential to treat HIV and prevent the spread of certain diseases has made it particularly attractive to investors who believe that at the current ENZC stock price, the company is undervalued. With this in mind, now could be a potential entry point for bullish investors as the company finally released its immune system supplement.
It is important to note that companies in this industry are moved by binary events, and investors could wait a long time before seeing a return on their investment as ENZC seeks to commercialize its treatments. The company could see profitability in the long term due to its valuable patents which could bring sizable value to the stock in the future. But in the short-term, ENZC is already capitalizing on the nutritional supplements market with the launch of its IPF Immune supplement. With the company promising to release the efficacy tests results for IPF Immune, ENZC stock price could be able to push past its resistance at $.0821.
$ENZC -Risk reward positive hereENZC has a great risk reward here. Plenty of positive news and collaboration to celebrate. The biggest issue is whether this route of "beating down small caps at all cost" is over. I think a stop of .1010 makes sense. Few % negative but if she starts to rally, 100%+ is a possibility in a short term.
This is not a recommendation to buy or sell. This stock is too small for me to invest any client money in. I own a position.
$Enzc where do we go from here??? The chart broke down from our previous wedge, causing a wide broadening formation.
We broke below the 0.618 fib level, would have liked to see a sustained volume shelf there creating a better support.
Price will need to bounce from 0.1011 and close above that level or we will continue to see continued selling pressure.
EXPECT ALOT OF VOLATILITY FOR THE REMAINDER OF DECEMBER!
I still haven't sold a single share and will continue to aquire more every chance I get (seems more now than ever)
Know your 50/30/20 rule!
50% of what a stock does is determined by what the overall market does
30% of what a stock does is determined by what the sector & industry group does
20% of the movement of the stock is determined by the analysis of the stock itself
Enzc wave 5 correction complete 🤘🏻It appears we just completed a 5 wave corrective pattern to squeeze the end of the triangle.... Bouncing off the 0.618 fibonacci level (the golden ratio). This is a classic bullish setup! Especially since we closed above the 0. 618 fib.
🤘🏻Future catalysts are closer than we think 🤘🏻
🐂Come on audited Financials and uplisting🐂
PENNY STOCK PLAY ENZCAll,
This one should bounce now or at new area. Previous broken trend line is now support on top of previous demand zone support. One of the two will bounce watch reverse from daily on 4H/2H/15M. If it breaks under look at next level same thing.
MAKE SURE to have a STOP MARKET loss on all penny stocks like this. I usually give 3-5% max. Always market stop loss not limit.
ENZC Elliot Wave ProjectionWave 1 is the start of a bullish trend, it is SUPER hard to catch, usually everyone is pessimistic on the stock and nobody believes the move that its making.
Wave 2. where we currently are and possibly just finished.... usually has lower volume than wave 1, The price usually does NOT go below 0.618 fib retracement line (which we haven't) :), however sometimes but rarely it does.... The price usually falls in an ABC type of wave, which we currently saw last week. Phase 2 is where the shorts try to take over, the bears eat away at the ones scared to hold onto profits as we attempt to retest phase 1 lows. If you follow charts we ALWAYS retrace and test an old resistance like where we fail and drop harder, or buyers come in and we make the previous resistance a new support.
wave 3 THE EXCITING WAVE!!!!!!!! Usually the most POWERFUL and largest wave in a trend. (some would argue wave 5 is, but not necessarily true... Wave 3 - the news is now POSITIVE and fundamental analysts start to raise earnings targets and estimates.... *prices rise quickly and corrections are short lived. Anyone looking to get in on a pullback will likely "miss the boat" Wave 3 OFTEN extends wave 1 by a target ratio of 1.618 aka the GOLDEN POCKET!
Long ENZC even without PR and/or News.... LONG ENZC!!!We can see here that ENZC has had alot of good moves recently, for both the bulls and the bears. However, lets have a look at the fibs and see what that tell us.....
Without news we can plan for a move to the 0.618 area @ 0.59 . That would be a 0.12 cent move, awesome news! Thats over a 20% gain from its current price. With news however, this stock could easily see $10 by end of year. HIV, Covid, etc... news is coming, i'm buying the dip every chance i get. If/when a partnership is announced this could easily see triple digits. Not to mention Enzolytics is one filing away from being SEC compliant and becoming one step closer to the NASDAQ ($3 price is needed). Do your DD and you can easily see a 6 x's return on investment.....