DNAprint Genomics (DNAG)

[frogdreaming]

It is dubious because the potential benefit comes at such a high cost and with a significant increase in risk.

The benefit is $8 million dollars.

The cost in share of the company is 40%. The present valuation of the company is about $30 million. 40% would have a street value of $12 million. (So we handed them $4 mil for the privilege)

The increase in risk is due to the possibility that the lender decides to bail at any time and take his money with him. Which he can do regardless of the company's progress. The result is the much ballyhoo'd 'death spiral'. While it is not necessarily inevitable it is now within the realm of possibility. It wasn't before.

That is dubious!