DNA Brands Inc (DNAX)

[Ed the Trader]

"That brings up a subject. Ever wonder how much Yo Adrian paid for DNA? Did in fact Yo Adrian buy DNA? Is Yo Adrian just a front guy and Mel or somebody else actually owns the shell company? You have CEO's and new management but nobody ever questions who actually owns the shell. That might be the answer to why this will never get beyond .0002 for more than a few minutes."

Technically, all of the shareholders own the company.

If you go to the web site for the Colorado Secretary of State, and look at the Articles of Incorporation, you will find all of the different classes of stock issued by DNA Brands, Inc.

What we talk about, monitor daily, and trade publicly through our brokers is the common stock with the DNAX ticker symbol. None of the other classes of stock are publicly traded, so none have a ticker symbol.

The Series F Preferred stock is the controlling block of stock, and Adrian has already alluded to the fact that he holds those shares.

There is also Series G Preferred stock that was created when Adrian took over the company. There are 2 million shares total and the shares have a stated value of $4.00/share. There is a requirement for the company to buy back a certain amount of these shares every quarter. If that does not occur, an interest rate accrues which is added to the buyback price of the stock. I figure this is the instrument which Adrian used to "buy" control of the company. By having the company issue a new class of preferred stock, and configure the issue as a loan, it appears that Adrian probably used company resources to acquire the company.