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DNAX(D) is down 80% just today. It seems that I mentioned yesterday that an 80% loss is typical with most reverse splits before most people are allowed by their brokers to place a sell order.
Of course, in this case, the carnage is just getting started. People holding this ticker through brokers like E-Trade probably will not regain access to their shares for another week.
Yes, but Red Hat's founder was actually working, and he brought a product to market.
The closest that Adrian EVER gets to actual work is that he stands next to someone else working in the hopes that other people will be conned into believing that Adrian is doing anything productive (other than filling his own pockets with other people's cash).
Adrian took over DNA Brands, Inc. in February of 2016. That is two years and eight months ago.
If he had ANY intention of bringing a product to market, it would already be in the market.
If Adrian had wanted to revive the energy drink line, it would have been in production a year and a half ago.
If Adrian intended to bring any other product to market, then he would have followed through with at least one of the MANY products and services he claimed were going to start generating any revenue for the corporation.
He failed to execute EVERY. SINGLE. TIME.
There is only ONE logical explanation, and that is that he never had any plans to bring anything to the marketplace which could generate any revenue. All he cares about is the next story which he can spew which might con profit-hungry people into dumping their cash into his pockets.
Why would Adrian sell the golden goose when he can just execute a reverse split to recharge it's ability to extract cash from people's pockets.
Something IS up! It is Adrian's ability to continue his lucrative dilution engine, and what Adrian has in store for shareholders is the ability to finance his lifestyle.
By virtue of being marketmakers, their responsibility is to make a market for a ticker, even if both a buyer and seller does not exist. Toward that end, a marketmaker is allowed to pretend that they have shares to sell even when they do not. The marketmakers usually has a limited period of time to produce the missing shares that they sold... something like three days... but if the marketmakers trade among themselves using imaginary shares, as long as they make sure everything is even at the end, they are all in the clear. In the meantime, as no one else likely has any shares yet which are freely tradable (although it seems that different brokers restore access to split shares after different periods of time... E-trade seems to be one of the worst in this regard), the marketmakers can use a very small amount of shares to control the price of the ticker between the execution of the split and whenever everyone else's shares once again become tradable.
To be accurate, if you contact a live person from E-Trade, they will tell you that your shares will be frozen until E-Trade receives the physical newly created post-split shares from the corporation's transfer agent. For whatever reason, for OTC subpenny tickers, this usually takes 10 trading days.
It does not have to take 10 days. I was holding MetroPCS stock (PCS) when the merger with T-Mobile resulted in a split. My shares of PCS in my E-Trade account were frozen for about one day to execute the split and change the ticker name to TMUS. It only took one day because that is what MetroPCS and T-Mobile wanted.
It will almost certainly take 10 days to get access to your new DNAX shares on E-Trade simply because that is how long Adrian wants it to take.
However, it could be worse. I once was holding shares of another ticker that suffered a reverse split. Those shares were frozen for roughly two months before I was able to access them again.
Because of these delays, be it two weeks to two months, a typical reverse split sucks about 80% of the pre-split value out of one's holdings before they will ever have the opportunity to place a sell order.
Any corporation files with FINRA for approval of any split. However, the corporation gets to decide how much advance notice is publicly given because the corporation decides which day FINRA publishes notice of the split in FINRA's daily log.
Adrian told FINRA to give effectively zero advance notice to the public, so that is what FINRA did.
You can note that I had posted several warnings that a reverse split was coming, and I provided specific reasons why. I began posting those warnings many months ago. Sorry that you did not heed those warnings. The evidence was clear in many ways that this reverse split was coming.
There may be a short window of opportunity if your broker unfreezes your shares in time. For instance, all E-Trade shareholders have their shares frozen for a minimum of 10 trading after any split of any subpenny stock.
Unfortunately, it is about to get worse for you. Unless your broker provides you with an opportunity to sell your shares quickly, you will have to stand on the sidelines with your shares frozen by your broker as the price per share rapidly plummets back to subpenny levels.
Did that corporation have actual products and actual revenue? (because actual products and actual revenue is usually the only way a reverse split might be a good thing)
If not, what did the company do to hype the company to create a run on its stock? (because without a run on the corporation's stock, the PPS is not going up and strangely, immediately issuing a PR announcing yet more dilution is not the right kind of hype)
If that is what Adrian told you, he just plain simply lied to you.
In the latest PR, Adrian clearly states that part of the motivation for the reverse split is so "Long time PPM investors can now deposit their stock certificates." These are privately held shares of corporate stock which were not DNA common stock and therefore, not publicly registered.
However, they are about to become publicly registered to allow those holders of private corporate stock to deposit their (now public) shares into their brokerage accounts to make them available for trading (ie: selling).
Also per the PR, "DNA Brands will be commencing a Reg A (Tier 2) offering..."
That offering will be for the sale of yet more new shares.
The PR also stated that the number one reason for executing the reverse split is so "The company can now attract adequate equity financing as opposed to debt funding." If you don't understand what this means, a corporation sells stock (ie: equity in the corporation) to raise funding. This means selling many more new shares of DNAX common stock. This is instead of the earlier practice of obtaining loans which were convertible for the holder of loan note into new shares of stock. Either way, Adrian gets cash and you lose value in the company as the value of your shares is further diluted.
Adrian is so incapable of constant dilution that this time last year, DNAX averaged one BILLION shares traded every day... for TEN straight trading sessions.
It did touch $0.0002 a few times, but it could not hold that PPS and it dropped back to $0.0001 again every time.
I missed the solar panels. Was that before or after he was going to get commissions for telling a Bitcoin ATM company where they could place their ATM machines?
Adrian has had nearly THREE YEARS to bring a product or service to market... ANY product or service... and he has failed to do that.
How much more persuasive does a track record have to be to understand that he will never conduct any actual business which could produce actual profit because that would involve actual work on his part? Actual work on his part simply is not going to happen.
That would have required Adrian to do actual work to grow a business. Adrian is too self-important to do actual work. The closest he will ever get is to stand next to work being done by others to provide some illusion that Adrian might also be doing work.
Well, Adrian already has something like a 21 billion share O/S on top of a 12.5 billion share A/S. The last thing he needs right now is a yet larger O/S. Somehow, he needs to get rid of about 10 billion shares to get the O/S back under a A/S.
If the A/S is still misreported as 25 billion shares in this latest quarterly report, then Adrian is still defrauding investors and prospective investors because the correct A/S is half that.
The share structure which is reported on the OTC Markets web site is controlled by Adrian through an account which Adrian accesses to set the numbers that are reported.
OTC Markets has no regulatory authority to force Adrian to report the correct share structure.
The transfer only reports the figure for the A/S which Adrian provides to the TA.
The State of Colorado does not monitor the A/S, or that the O/S remains less than or equal to the A/S.
Adrian is gambling that the SEC will not realize that he is defrauding investors.
In the last filing provided to OTC Markets (remember... no filing with the SEC since 2014), the A/S is reported to be 25 billion even though the correct A/S is 12.5 billion.
Sorry... Adrian is a con man whose only interest is selling more shares. He likes to stand next to actual business activity without actually engaging in any actual business activity because that would involve engaging in actual work.
Worse yet, Adrian is just plain defrauding investors. He cut the A/S in half without reducing the O/S. He continues to actively report the A/S to be 25 billion shares when the actual A/S is half of that. The fact that he put the 25 billion figure in the last quarterly report proves his fraudulent intent.
By definition, the correct figure for the A/S is ALWAYS what is filed with the Secretary of State (in this case, of Colorado).
That figure is 12.5 billion shares.
This is not a temporary thing where Adrian is in the middle of some sort of SET of changes. He reduced the A/S more than 6 months ago, and reported the incorrect A/S in the last quarterly report months later.
Adrian is a flim flam man whose only objective is to pick your pocket.
The only problem with this list is that the only accomplishment Adrian has ever achieved is taking shareholder cash. Adrian never follows through on any actual business initiative.
For an objective lesson in what happens to the PPS of DNAX when the volume rises, refer to the stock's history in the October-November of 2017 timeframe.
Volume averaged over a billion shares traded... FOR TEN STRAIGHT TRADING DAYS... and the PPS still could not stick at even $0.0002. Almost all of those shares were traded at $0.0001.
Adrian has ZERO intention of building an actual business around DNA Brands, Inc., and therefore the DNAX ticker will not make money for anyone but Adrian and his toxic financiers.
The share structure information displayed on the OTC Markets Web site is provided directly by Adrian, the CEO of DNA Brands...
...and he is lying to you (and everyone else).
The correct size of the number of Authorized Shares (A/S) is always found at the office of the Secretary of State from the state in which the business is incorporated.
In the case of DNA Brands, that state is Colorado.
Fortunately, the Colorado Secret of State has a web site where the Articles of Incorporation, and it's amendments, can be viewed for DNA Brands.
If you look there, you will find correct size of the number of Authorized Shares.
Last January, Adrian cut the A/S in half from 25 billion to 12.5 billion.
Adrian is not propagating the change to locations like the OTC Markets because if he did, shareholders and prospective investors would want to know why there are roughly EIGHT BILLION more issued shares outstanding (O/S) than the size of the Authorized Shares (A/S).
You see, when Adrian cut the A/S in half, he did nothing to reduce the O/S.
The answer why Adrian did this is simply that Adrian is defrauding shateholders.
The A/S is ONE number and it is the total number of shares that the corporation has publicly stated may ever be issued by corporation without a modification of the Articles of Incorporation because the A/S is the number of shares that the corporation has authorized itself to issue. Hence, "A/S" means "Authorized Shares."
Because a corporation may have more than one class of stock, the A/S is sometimes also expressed the amount of shares which may be issued as publicly traded common shares. That version of the A/S is smaller than the total A/S which includes every class of stock. Note that a class of stock is either common or preferred, not restricted, unrestricted, unissued, escrow, or any other designator other than "common" or "preferred."
The A/S is always reported with authority in the Articles of Incorporation, and EVERY other source for that number is either a copy of what is stated in the Articles of Incorporation, or else the other sources are out-of-date.
Shares that are not active, are restricted, or anything else have ZERO impact on the A/S. Modifiers like that effect the O/S and the float, not the A/S.
The ONLY time that the A/S is changed is when the Articles of Incorporation are modified.
The A/S is simply the maximum number of shares, and has zero indication of how many shares are split out for any designation which suggests a subset of what is done, or going to be done, with such a subset of shares.
Shares are not issued as part of the A/S. Shares are issued as part of the O/S (which means "issued shares which are outstanding").
With regard to your statement:
shares which have been issued are counted against the O/S, not the A/S. If some shares are reserved, but not yet issued, the A/S is uneffected. When the shares are issued, the O/S increases and the A/S still is uneffected.
I suggest you go review terminology at someplace like https://www.investopedia.com/ so you are not confusing one term for another.
Quite simply, for months, Adrian has misstated the A/S of the DNAX common stock in multiple locations, and it is obvious that he has blatantly done so to mislead investors rather than accidentally. That is fraud pure and simple.
I have no idea what you are attempting to suggest.
When Adrian cut the A/S in half last January, he invalidated nearly half of the outstanding shares. There are something like 20 billion shares outstanding, but the A/S (for common stock) is only 12.5 billion.
So, since January, about 8 billion outstanding shares have been illegitimate. Those could be your shares. They could be someone else's shares. There is no way to actually differentiate.
Adrian has defrauded all shareholders.
There are two ways to rectify this:
1) Adrian can execute a reverse split to bring the O/S under the 12.5 of A/S allocated to the common stock.
2) The SEC can suspend the ticker.
If I owned DNAX common stock, I would be reporting this to the SEC immediately because the CEO is defrauding all of you.
The Articles of Incorporation contain the official, accurate and authoritative figure for the A/S.
The corporation is supposed to be propagating that same figure everywhere else that the A/S is reported, including their transfer agent (if they have a transfer agent; most privately held corporations do not), the SEC [10Q, 10K, etc.] and/or OTC Markets [quarterly and annual reports and the otcmarkets.com web site (if the shares are registered for public trading), press releases and other forms of public announcements, corporate web sites, and investor prospectus documentation.
Any corporation may incorporate in any one of the fifty states regardless of that actual physical location(s) of their business.
Any corporation is free to transfer their incorporation to a different state at any time by filing the correct forms and paying the correct fees with the two states involved. If a corporation moves their incorporation to a different state, the previous state of incorporation will still retain all of the corporate filing for that corporation up to the date which the corporation moves, and those corporate filings should be available in some form to the public on a permanent basis into the future.
Technically, a corporation could file for incorporation in more than one state simultaneously, but the two corporate entities are two separate businesses and for tax purposes, it would be a very big no-no to commingle assets between the two corporations. A more likely scenario would be if a corporation decided to form a subsidiary corporation in different state. Even then, the standard procedure would be to not use the same corporate name for both corporations.
There is nothing to stop two completely unrelated entities from having the same corporation name as long as they are not incorporated in the same state. Individual states check for both identical and similar corporate names when a filing for formation of a new corporation is submitted, but the states do not check for the same condition between the states. Registered trademarks and competition for Internet domain names tends to filter out that problem to a large degree.
If someone attempts to issue shares of corporate stock (publicly or privately) that do not correspond to a legal corporate entity, the shares are not legitimate, and the someone attempting to issue those shares is committing fraud. The size of the Authorized Shares (A/S) filed in the Articles of Incorporation determines how many shares each corporation can non-fraudulently issue.
Keep in mind that there is a difference between publicly traded corporations and privately held corporations. Privately held corporations only have to file with the state of incorporation to issue privately held stock. For a corporate to become publicly traded, the corporation also has to file an S-1 or similar document with the SEC and jump through some other hoops as well. Alternately, a corporation can become publicly traded by filing the correct paperwork with OTC Markets.
It does not matter if the corporation is publicly traded or privately held. The A/S filed in the Articles of Incorporation is still the same. For a publicly traded corporation, each class of stock which is publicly traded must still have a separate S-1 (or similar) document filed with the SEC or OTC Markets.
One creates new Articles of Incorporation only once. After that, the corporate officers AMEND the existing Articles of Incorporation.
Usually, the amendment only addresses the sections of the Articles of Incorporation which are to be changed by the amendment. However, there is nothing to stop the corporate officers from filing an amendment that replaces the entire Articles of Incorporation with a fresh set of Articles.
If the corporation is moved to a different state, a new Articles of Incorporation document is filed in that new state. The old Articles of Incorporation filing, and all of its amendments to the point that the corporation was moved remain on file with the old state of incorporation.
You should be confused between there should be no delay. There could potentially be a delay of hours or days with regard to when the state's Secretary of State's office officially files and amendment to the Articles of Incorporation. There could also be a delay of hours or days with regard to complete propagation of knowledge of the amendment to the Articles of Incorporation throughout a larger corporation.
These sorts of very short would be the result of weekends or holidays interfering with end-to-end immediate propagation of new information.
These sorts of very short term delays could result in the accidental reporting of the wrong numbers from one of the various reporting mechanisms. However, virtually all legitimate corporate businesses are going to go out of their way to insure such misreporting does not occur because of the potential criminal and civil liabilities which such mistakes could incur.
There is absolutely NO EXCUSE for a propagation delay of MONTHS, as what has occurred with DNAX. In January, Adrian filed to cut the A/S in half and the State of Colorado officially filed that change immediately.
In February, Adrian also filed to change the name of the corporation from DNA Brands, Inc, to Token Talk Inc. The State of Colorado officially filed that change immediately as well.
In April, the same Adrian then filed the corporate quarterly report with OTC Markets which claimed that the name of the corporation is still DNA Brands, Inc. (which is untrue) and that the A/S had not been changed (which is also untrue).
From the January/February timeframe until now, Adrian and the transfer agent continue to report, on the OTC Markets web site and elsewhere, the untrue corporate information (ie: incorrect name and incorrect A/S) for Token Talk Inc. DNA Brands, Inc. no longer exists as a corporate entity.
The most obvious reason that Adrian has not propagated the corrected information is that he has done nothing to reduce the O/S to be less than or equal to the A/S. Investors would raise much protest if they understood that the A/S is currently almost half the level of the O/S.
This is corporate fraud, pure and simple.
I am not sure what you were asking about this quote. Try again if you are still unclear, and I will fill in the blurry parts.