DNA Brands Inc (DNAX)

[Ed the Trader]

"THIS LOOKS LIKE THEY GOT FUNDING GOING.THUS THE INCREASE.INTERESTING."

If you are correct, then one would think there would be a PR to announce that funding has been acquired. However, because the T/A is gagged, it is obvious that the mentality of the DNA management is to try to keep shareholders unable to learn of the dilution (as if that is really going to be successful... fools!). So, because the increased A/S does a 1:6 dilution of existing shares, regardless of who is going to buy them, DNA management likely does not want to announce anything about that either. Because we will get zero information from DNA management (and unless they ungag their T/A, there will be no sign of a change in mentality), you have to assume worst case which is that they have already dumped 600 million shares into the market to raise the O/S to the level of the previous one billion A/S, and will now be dumping 5 billion new shares into the market as fast as possible.

THE only important question is if DNA management is going to use the increased funding to increase advertising so they can sell more product, or are they going to use the extra funding to fund their newly formed preferred shares when they liquidate the business. We obviously are not going to get a straight answer from DNA management about that.

So, we shareholders are going to have to figure out how to gain intelligence information ourselves from distributors and retail stores where DNA is sold.

Do you see any sign of distributors dropping DNA?

Do you see any sign of retail stores dropping DNA, or signs that inventory is not getting replenished?

Any time anyone visits DNA corporate headquarters, they should COUNT the number of full pallets of product that still exist in their warehouse so we can get some idea of product getting sold and/or new product coming into the warehouse. I can pretty much guarantee that they will not be producing more product in the short term because they overbought and have too much of their available assets now tied up in inventory in their warehouse. This is because of the mismanagement of their previous very short term CEO. Now, the interim CEO has to attempt to clean up the mess, and part of that is to lower inventory in their warehouse by converting some of that into cash so they can pay for other elements of their business.