DNAprint Genomics (DNAG)

[frogdreaming]

I'd like to respond to this one as well, as i agree that it is very important.

It suggests that Dutchess is acting as an intermediary between unnamed investors and DNAP. It furthermore allows those investors to buy up to 300,000,000 shares of the company (see the S2) and restricts them from selling them for some time.

Worktoplay then suggests that DNAP use the funds to buy out LaJolla and free of another 424,000,000 shares for Dutchess to purchase.

Now you will all remember that one of the restrictions placed on the LaJolla deal (and the one that drove the pps down) was their limitation to own no more than 4.99% of DNAP stock at any one time. This prevented LaJolla from gaining any voting influence over the company by just buying the shares and keeping them.

Now that restriction has been lifted in the Dutchess agreement. Whoever the investors are, they will gain significant influence. 300 million shares is comparable with the collective ownership of present management. 724 Million (the present 300 Million in the agreement and the 424 million freed up by eliminating LaJolla) would be close to 50% ownership and would allow the 'investors' to exert significant influence.

On a totally different subject. (Or is it?

When the company I worked for was acquired by a larger entity, all the stock options that were in place, even the ones that wouldn't be vested for another five years, became vested immediately that the deal took place. It's in the boilerplate of the laws that regulate options. Now does anyone find it interesting that those who participated in the PP, (you know the ones, those guys listed in the S2 that 'no one' know about)have been allowed to exercise their warrants well ahead of the two year time frame originally called out? What benefit does the company derive from allowing them to bail out early? Are there other factors at work here?

Can anybody tie any of this stuff together, and come up with an explanation?

regards,
frog