Here is the information I obtained, from my recent phone calls with Hector Gomez (starting on February 2, 2009, up until today.) This is all of the material nonpublic information I possessed, concerning DNAG.
Note: There was no nondisclosure agreement -- I had avoided posting this information publicly, until now, mainly to be polite and not damage any relationship that I may be forming with DNAPrint Genomics. Now, it appears the time is right for me to release all of this info.
- DNAPrint had 3 people still in the lab (but obviously not full time)
- 2 people in drug development group. They received a grant from Ireland, for research into IBD (inflammatory bowell disease,) and the work was completed. The initial grant was for around $150,000, and the second grant (for the next phase) was expected to be "2 to 3 times that" amount.
- Three parties/groups have expressed interest in DNAPrint Genomics, or parts of it. (I won't name any names here, for privacy reasons.) One group wants to license DNAPrint's forensics technology. Hector said that, if this deal was signed, they would have the funding they need to be financially stable, and continue operating. Another group is interested in AncestryByDNA and DoggieDNA. A third group is interested in the lab and equipment (not the desired deal, from DNAPrint's perspective.)
- Also, there had been some dialogue with Beckman Coulter, and with Illumina, but those companies hadn't moved on anything, yet.
- The key patent application was answered satisfactorily, and they should have an answer in the next few weeks or months. If/when granted, several companies will have to go through DNAG for their ancestry testing.
- They still owe money to Dutchess (the main creditor.)
- Dutchess expressed that they want to keep DNAPrint Genomics' doors open, and offered to pay salaries for a few part time people, as an interim measure, until something else was secured.
- They had immediate funding needs of around $300,000 (including paying bills, the IRS is owed $75,000, and getting the reagents needed to continue processing the DNA samples.) Longer term funding sought is $3M+.
- The idea was discussed, that I could attempt to pool a group of shareholders and/or other investors, including myself, to raise some of the money they need. (By myself, I didn't have sufficient funds to commit, to meet all of their immediate needs.) I expressed interest, and suggested I might be able to commit $100,000 as part of a group effort, but I said the other investors would need more information about what's going on. Hector said the PR firm in New York they had been using, was owed money by DNAPrint, so that was an issue. I suggested various alternative ways to get the information out, including me posting it, with permission from the company, or me paying the PR firm in New York (the amount already owed, plus fees for preparing a new letter.) I was frustrated in this line of inquiry. Finally, today, I am resorting to posting this message, to release the information I have.
- Hector invited me, as the largest shareholder, to become a board member. I didn't make a decision on that, but I will say, I felt honored by the invitation.
- In 2006, as is already known, income was around $3M. That income declined in 2007, and again in 2008.
- Hector did give me the OK to disclose Richard Gabriel's resignation.
Today, Hector told me:
- He and Tony Frudakis resigned last Friday night, as they couldn't take it any more. (Hector had previously told me that Tony, the company's founder, had been very depressed.)
- DNAPrint Genomics' management is now in the hands of Dutchess. Hector is offering to help Dutchess with this (arranging things, talking to parties that are interested in the company...)
- Said he will get back to me in a couple days.
Those are the substantial details that I have. FYI, I'm still not selling my shares, and I am still interested in participating as part of a group of investors, to help DNAPrint Genomics get through this financing pinch, during the worst financial/credit crisis since the Great Depression, providing that Tony and Hector, other other suitable management, would be willing to manage the company.
NOTE: All standard disclaimers, including forward-looking statements disclaimers, apply. The above information is accurate to the best of my knowledge, but I cannot guarantee that it is 100% free of error or misunderstanding. This message may include forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. Nothing in this message should be taken to represent a promise or guarantee of any kind. Caveat emptor, etc.
Sincerely,
Daniel Gannon
