DNAprint Genomics (DNAG)

[DougS.]

I don't think you understand the nature of this arrangement. As long as the contract is in place, the lender is obligated to make payments to DNAP. Some of those payments are likely performance based but this would limit the risk of both parties.

The arrangement is too large to be predatory financing. The lender couldn't very well manage to hedge against his converted shares and hope to make back what was loaned + any profit. The share price is too low and funding agreement is too large.

What this deal really does is place the success of the company squarely on the continued progress of the science. If the science goes as planned then the scenario you laid out doesn't exist. If there is no real progress then shareholders lose out.

Also, how did you come out with an accurate 40% dilution?