DNAprint Genomics (DNAG)

[frogdreaming]

We have heard all the theories and speculation surrounding the various aspects of toxic financing, death spirals, naked shorting, etc.

They have always been countered with arguments regarding the potential viability of the technology and the intellectual property of the company.

No one has yet mentioned the scenario in which the financier purposely drives the pps into the ground, not to escape covering a short position, but in order to gain exclusive control of that technology.

Such a farfetched concept would not even occur to me if I hadn't seen this text in the latest filing;

The Note is due and payable in full on March 6, 2007. Other than the discount inherent in its purchase price, the Note is noninterest-bearing. The Note will be repaid using 100% of the proceeds of each put notice delivered by the Registrant to Dutchess under the Investment Agreement. The Note is also
secured by a security interest in substantially all of the Registrant's assets pursuant to a Security Agreement dated October 21, 2005 with Dutchess.

So what happens if the pps declines to the point that the Note cannot be repaid by dumping shares?

Does Dutchess get everything? Looks like it.

regards,
frog