The week started off with many stocks making strong moves and one of the stronger upward movers was the Enzolytics Inc (OTCMKTS:ENZC) stock. Following a key announcement from the company, the stock ended the day with gains of 7.3%, and perhaps more importantly, the trading volume had gone up six times the average daily volume. The biotech company made a joint statement yesterday along with the special purpose acquisition company Sagaliam Acquisition Corp.
In the joint statement, it was announced that the two entities had inked a non-binding term sheet with regard to the sale of two operating subsidiaries of Enzolytics, Virogentics Inc, and Biogenysis Inc. The transaction in question had a valuation of $250,000,000. However, it was also announced that the definitive agreement was still being finalized and the expected date of closing would be May 19, 2023.
As per the terms of the agreement that was signed between the two parties, the two Enzolytics subsidiaries would turn into Sagaliam subsidiaries. Sagaliam stock currently trades at the NASDAQ. In addition to that, it ought to be noted that once the transaction does go through, the two subsidiaries would get a considerable influx of capital.
That capital would help the two units to continue with the development and expansion of future and existing tech platforms. It was a major new development for Enzolytics and the rally in the stock was perhaps understandable. It remains to be seen if it can hold on to its momentum over the coming days or not.