DNA Brands Inc (DNAX)

[Ed the Trader]

"Here's a Q for debate: will the company do a reverse split and increase the AS in order to further dilute and raise capital?"

They would only need to do one of those, not both.

If a R/S occurs, the O/S is reduced substantially, so there is no need to RAISE the A/S.

If a rise in the A/S occurs, there is no need to do a R/S, because the O/S then has more headroom to grow up to the new, higher A/S.

If the market will continue to buy more new shares into a higher A/S, they can raise the A/S and avoid the dreaded R/S.

If the market refuses to absorb additional new shares, then the company has no choice to do a R/S if they still need to raise additional funds.

If they have actual news which reports actual progress toward rebooting the business, the market will likely be willing to buy more shares to support the reboot effort.

I know that I would be willing to buy more shares IF we are getting substantially closer to DNA back on stores shelves.

If they do a R/S without first getting the products back in the stores, I will sell whatever remnant is left of my holdings and kiss this company off.