DNAprint Genomics (DNAG)

[jkids210]

There shouldn't be another reverse split. I did some research on the previous reverse split and this is what I found. The previous reverse split was approved by shareholdes at the 2005 meeting. At the time the outstanding shares were approaching 1.5 billion shares and DNAG just signed a contract with Dutchess for the $35 million but they did not have sufficient shares to issue to Dutchess therefore a reverse split was required in order to get the capital from Dutchess. Since now DNAG is done with "toxic financing" there shouldn't be a reverse split.

"In order to use our $35 million funding facility with Dutchess Equity Partners to fund our operations and complete future acquisitions, we had to restructure our capital. During our 2005 annual shareholders meeting, we received shareholder approval for a reverse stock split. Pursuant to the reverse split, every 20 shares of common stock issued and outstanding on July 12, 2005 was combined into one share of our common stock. The number of shares outstanding at July 12, 2005 after this reverse stock split was 63,442,890, and the number of authorized shares remained at 1,500,000,000. Also, the Dutchess Equity Partners financing facility required us to register a sufficient number of shares that can be issued to Dutchess in return for up to $35 million in cash over a two-year period. These shares were registered during July 2005."

http://www.thomsoninvestortools.com/component/firm/msn/resources/asp/getReportPdf.asp?docKey=168-06668186-6FBF2OR1QAI063CAJ6TUI28OH0&docType=PDF

Look on page 51.

If I'm intepreting this wrong someone let me know.