DNA Brands Inc (DNAX)

[Ed the Trader]

"Wrong. Every now and then a part of the AS is taken and put in Escrow for a specific reason to be used later. It could be for a number of reasons like someone planning to buyout the company, and they want the shares ready. Those shares are not active and remain unissued in Escrow and not counted until they are drawn out. Once they are drawn out they become issued and part of the shares that are out. It helps to read things the company says to get a hint of what is going on before accusing them of doing illegal things."

Sorry, but NO.

The A/S is ONE number and it is the total number of shares that the corporation has publicly stated may ever be issued by corporation without a modification of the Articles of Incorporation because the A/S is the number of shares that the corporation has authorized itself to issue. Hence, "A/S" means "Authorized Shares."

Because a corporation may have more than one class of stock, the A/S is sometimes also expressed the amount of shares which may be issued as publicly traded common shares. That version of the A/S is smaller than the total A/S which includes every class of stock. Note that a class of stock is either common or preferred, not restricted, unrestricted, unissued, escrow, or any other designator other than "common" or "preferred."

The A/S is always reported with authority in the Articles of Incorporation, and EVERY other source for that number is either a copy of what is stated in the Articles of Incorporation, or else the other sources are out-of-date.

Shares that are not active, are restricted, or anything else have ZERO impact on the A/S. Modifiers like that effect the O/S and the float, not the A/S.

The ONLY time that the A/S is changed is when the Articles of Incorporation are modified.

The A/S is simply the maximum number of shares, and has zero indication of how many shares are split out for any designation which suggests a subset of what is done, or going to be done, with such a subset of shares.

Shares are not issued as part of the A/S. Shares are issued as part of the O/S (which means "issued shares which are outstanding").

With regard to your statement:

"Those shares are not active and remain unissued in Escrow and not counted until they are drawn out."

shares which have been issued are counted against the O/S, not the A/S. If some shares are reserved, but not yet issued, the A/S is uneffected. When the shares are issued, the O/S increases and the A/S still is uneffected.

I suggest you go review terminology at someplace like https://www.investopedia.com/ so you are not confusing one term for another.

Quite simply, for months, Adrian has misstated the A/S of the DNAX common stock in multiple locations, and it is obvious that he has blatantly done so to mislead investors rather than accidentally. That is fraud pure and simple.