DNA Brands Inc (DNAX)

[Ed the Trader]

"What if Adrian decides to increase another 5 Billion A/S?"

I have no doubt that Adrian will continue to dilute the O/S.

I have no doubt that once the A/S is close to being maxed out, Adrian will increase it. His only choices are to increase the A/S or execute a reverse split. Either way, the company has no revenue so Adrian must continue the dilution.

The question is whether or not the financiers are playing the game straight, and waiting the full 12 months to dump new shares per Rule 144, or if they are a short circuiting that waiting period by claiming an exemption to Rule 144.

Even if the financiers are short circuiting the waiting period, there is usually some repayment period where Adrian has the opportunity to repay the loans before they convert to stock. I am figuring that period is 30-90 days.

Therefore, new dilution will probably not be a factor if buyers absorb another 7-12 billion shares in the next month. Given the average rate of consumption over the last 10 trading days of 1 billion per day, it is possible to overcome the barrier that amount of shares presents.