DNA Brands Inc (DNAX)

[Ed the Trader]

"They should use a third party distributor and than they won't have to store the product or physically produce it themselves."

1) DNA has NEVER, in the entire history of the company, produced their own energy drinks. They have a custom bottler mix and can the products for them as needed. The only way that the huge expense of having their own production equipment could be justified is if they had sales volume which demanded that they ran that equipment everyday. Even in the days of peak sales, they only needed to produce additional product sometimes, never everyday.

2) What makes you think that a third party distributor would agree to purchase a bulk amount of a product when its only track record is that it failed in the marketplace roughly three years ago? Do not misunderstand; DNA products are very good. The primary reason that sales of DNA did not take off to very respectable levels is that the previous management of DNA did not plan for proper advertising and marketing of their products. If they had planned properly for that, DNAX would still be an OTCQB stock at over a penny per share, as it was until 2014.