DNAprint Genomics (DNAG)

[frogdreaming]

I'm willing to admit that I have only seen the PR, not the actual contract. Have you seen it?

"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."

The agreement calls for DNAP to issue common stock and warrants in exchange for the capital. There are a billion shares available. Even given the inevitable discount from market price, there are enough shares available to make back any money invested and more. The pps could drop significantly without impacting their safety net.

While this financing is not necessarily predatory in nature, predatory financing IS done in exactly this manner.

The 40% number is a conservative estimate. It is not necessarily accurate it could be low.

Do the math yourself. Take 8 million, divide it by a discounted pps, remember the pps was about .04 when the deal was announced, say .03 for example, gives 266 Million. Add in a percentage for the warrants package,how about another 50% or 133 Million, gives 400 Million. Assume an existing 600 Million OS and you have a 1 Billion OS and a 40% dilution.

You can quibble about any of the values but not enough to make a major difference.

regards,
frog