DNAprint Genomics (DNAG)

[frogdreaming]

gunnabe, The issue isn't specifically shares vs. cash.

If it was that simple he could just take the cash and buy shares.

He wants 'discounted shares'.

Both he and his son have been pushing the limits of ethical behaviour for some time in this regard. They sell company shares on the market and loan the money to the company. In return the company pays back the loan plus the interest, but not in cash. They get the equivalent value in 'discounted shares'. So in addition to the interest, they get a further bonus of whatever the discount value is.

The bottom line is that instead of the company selling a fixed number of shares on the market to gain capital. Frudakis. et. al. sells the same number of shares and gets them not only replaced but multiplied significantly.

Gabriel has evidently put a stop to this semi-larcenous behavior, and Frudakis senior is not pleased. The lawsuit is the result.

As you say it is old news.

regards,
frog