DNA Brands Inc (DNAX)

[Ed the Trader]

"The SILLY THING is saying Adrian is diluting the shares. We all know DNAX had old debt to clear out."

It is called dilution whenever any new shares are issued REGARDLESS OF THE REASON.

Today, per Adrian's own OTC filings, there are at least 1.4 billion more shares in existence than what existed before Adrian took over the company.

Months ago, Adrian had an interest in clearing out old debt because the issuers of that debt demanded payment before they would allow Adrian to move forward with any of his plans AT THE TIME to sell off the energy drink intellectual property.

Since then, Adrian has abandoned his efforts to slice and dice and rearrange the company, and he is back to attempting to reboot the energy drink business.

In order to reboot the company, what is paramount to that effort is to obtain funding to pay for production of inventory as well as proper marketing and advertising. The old debt holders figure no place in that equation so it makes the most sense that rather than trying to get the old debt holders paid off, Adrian would be ignoring them as long as possible to shunt as many resources toward the costs of the reboot of the business as possible.

Shareholders undoubtedly want all debts paid off as soon as possible because a better asset to debt ratio makes the company have more value. More value usually translates into higher PPS.

When Adrian needs to dilute the share structure with more new shares so he has the funds necessary to pay for the reboot, why in the world would he make it a priority to have repayment of debt holders be a direct competitor for the finite amount of dilution which the market will tolerate?

When the reboot cannot occur without additional funding, it makes zero sense to be attempting to clear out all of the old debt as long as the debt holders are willing to wait.