DNA Brands Inc (DNAX)

[Ed the Trader]

"Yeah me too.. I may hold 10 mil but i have 40mill...or i should just sell all because i have a feeling hes gonna do the Loi.. Thing and if they have control they will R/S this thing.. And after they do a R/s i may buy some..Only my thoughts .. Dont know for sure."

For some reason, people seem confused about how things would work if Adrian executed the LOI option.

So, I will try to explain...

1) You own shares of DNAX stock, which is the ticker symbol for the common stock of the DNA Brands, Inc. corporation.

2) Adrian would sell the energy drink intellectual property to a private party. That means that the private party would own the energy drink recipes, and DNA Brands, Inc. would no longer ever have the right to use the recipes to produce any of the energy drinks.

In return, DNA Brands, Inc. would receive some amount of cash. Adrian has only characterized it as multiple millions.

Your stock holdings would remain unchanged.

If the market perceived that the amount of cash which DNA Brands, Inc. received in exchange for the energy drink intellectual property increased the value of the company, the PPS could increase as a result.

If not, the PPS would not go any lower because $0.0001 is as low as it can go.

3) Adrian may use some of the cash to pay some existing debts.

4) Adrian would use some of the cash to purchase one or more existing businesses which have existing products and revenue. Because we are talking about a cash purchase instead of a huge stock transfer to the acquisition target(s), Adrian would retain control of DNA Brands, Inc.

Your shares of DNAX would not change. Because DNA Brands, Inc. would completely own the other businesses, Adrian would have control of those businesses, and there would be no reverse splits of DNAX common stock without Adrian's approval. As you know, Adrian has been pretty specific that he is not going to do a reverse split.

Once the sale of the other business(s) is complete, the market might perceive an increased value for the DNA Brands, Inc. corporation due to the added value its ownersbip of one or more operational businesses with an existing revenue stream.

I hope that helps...