DNA Brands Inc (DNAX)

[Ed the Trader]

"The dumping of shares and no bid has nothing to do with anything posted on this board. Get real. The CEO did it to himself with his conference call performance."

Obviously, Adrian wanted to address the issue of a reverse split because he was probably getting pinged about it by both shareholders and perspective investors, and as the stock began to rev up, the frequency of those pings probably was reaching an unmanageable level.

What Adrian should have done was offer MANY more specifics.

He should have acknowledged straight out that any O/S measured in BILLIONS is bloated and as such it is a danger for investors that a reverse split could occur at any time. He should have also reminded people that: 1) the O/S was already near 6 billion when he took control of the corporation, and 2) additional fund raising was absolutely necessary to fund the reboot of the business because there was no cash left in the business when he took over. That accurately and reasonably addresses the 10 billion share A/S.

He should have stated that at some time in the future, a reverse split would be necessary to get the O/S down into the more respectable millions of shares instead of the current billions of shares.

Next, he should have provided an accurate and frank accounting for where the company is with regard to funds raised versus funds necessary. He should have straight out given people an estimated budget for the reboot, and contrasted that against the funds now available.

There is no shame including money to cover his living expenses because no one should have to work for free and he has to eat just like the rest of us. There is also no shame in stating that, for instance, $200K had been raised but he needed $500K to complete the reboot.

If necessary, he should have addressed raising the A/S again to allow the acquisition of the funds necessary for completion of the reboot without the need for a reverse split.

To get support of people to put the additional required funds into the business, or to convince them to keep it in the business by holding their stock, he should have provided a detailed schedule for when milestones were planned to be completed.

Finally, Adrian should have provided a promise that as long as investors would fund his complete reboot plan by a certain date (and specify that date), there would be no reverse split until some reasonable time frame after financials were reported once the reboot was completed. That would allow long-term shareholders the opportunity for profit taking, and probably allow replacement share buyers to come out okay after the reverse split because the business would be growing instead of stagnating.

If Adrian had proposed a plan similar to this during the conference call, I believe DNAX would have be at least at $0.0004 today.

It takes courage to trust other people to opt into this type of plan, and for most OTC Pinks, such a proposal would almost certainly be soundly rejected. However, as many of us have already noted, DNA is special among OTC Pinks because of its award winning intellectual property (ie: it's drink formulas). That gives this CEO much more latitude than most CEOs of OTC Pink corporations. Adrian really needs to realize what he has is special that way, and not squander the good will that can be extended by shareholders accordingly.