Applied DNA Sciences Inc (APDN)

[ckuratz]

TCMB....Another thought about reducing dilution. If one of management's goals is to diminish the upcoming dilution and if it has $2-4M to spare, it should have asked for less from the secondary raise. At $6/share the company could have avoided creating 667K common shares and 667K warrants which is about 3.5X more than the warrants it could retire with the deal on the table. It just makes sense that its primary motivation to prevent Series B Warrants from entering the mix must be something other than reducing dilution.

Actually the flip side of this debate is more important to me from two perspectives. First, it appears that management senses that the company might not need $2-4M from the secondary. If finances remained the same next year as in fiscal 2014, it would need almost all of the $$$ raised to fund operations. Therefore, this should be seen as a strong signal that management expects that business could be substantially better next year, particularly if it goes through with the deal. Second, the only unexercised Series B Warrants existing currently have a strike price of $14.59. To eliminate this crop of warrants, management is willing to pay nearly twice the current stock price today for warrants that might never convert. This is another strong vote of confidence from management for the company's direction.

GLTA.