Hi all: Hey Chris have a great time in Scotland! Just don't turn "BLUE" on us. Hagus a good time!
Ann your efforts are appreciated. It is unfortunate that the efforts you've made has been denigrated by highlighting ommissions of date when the content is of so much import.
Hopeful, you can attack anyone here for being in error but your style in those attacks speaks volumes about your personal style. Yes the price per share can go up and we will all see rewards. You used the example of sixty cents. Well in recent times we could have gone from .006 to .016. I think that corresponds to your .60 cents going to say $1.50. That is nice and all, BUT. Market forces, lack of headway, have kept DNAP in the startup phase so long that expenditures have been necessary for survival rather than advancement. The upcoming stock split "consolidation" has the net effect of reverse splitting all our shares but notm the total authorized shares. This in effect means the company takes the remaining shares in the treasury and multiplies them by the split ratio. Let's use a 1 for 16 consolidation.
On that day, your 1600 shares becomes 100 shares. At that time, the instant price would be 16 times the preconsolidation price per share. Let's say 1 cent. So your account balance that had a monetary value of $16.00 at 1600 shares at 1 cent now reads 100 shares at .16 cents or $16.00. Thats the normal "reverse split" part of the equation.
Now the bitter pill.
As I understand the consolidation, the 16 million (just a convenient number) in the company account, have a value of 1 cent, and if issued to a financier for operating cash will reflect a discount to the purchaser, "in some form". The institutional purchaser will get some form of average price, or such.
At the date of the consolidation, the shares in the DNAP Authorized Kitty will turn to 1 million. BUT! Because The number of authorized total shares is not being reduced, DNAP will have a significant number of "post consolidation" shares to finance the company. Those post consolidation shares would be issuable at the new post consolidation price of .16 cents less the usual discounts. If DNAP was maxed out with those 16 million being the ceiling amount, they would become 1 million, and then to get back to the ceiling, 15 million shares at the .16 cent price are created for the company to issue or market as required as the Board of Directors sees fit. If you believe in DNAP, no change from business as usual for DNAP. If you don't trustr the BOD, then you expect the new available shares to be awarded as bonus and lieu of salary contributions to the BOD and favored contractors.
I believe Chris Baskett was pointing out to you, he felt as a result of the additional shares being created the percentage of ownership he has in DNAP is being reduced. Of course at the instant of the change, and until those "post consolidation shares" are put in the market, we are not dilluted. If the company never issues them, they are not dillutive by my reckoning. Do I think they will be distributed? Well certainly YES! Why bother with this exercise at all then. DNAP needs money. We have alliances with a number of people who expect payment for services. Without payment, well I fear the "contractors" are not as willing to have faith in DNAP and would prefer some form of actual payment for services rendered.
In any case, that is my understanding of this matter. However Hopeful, your comments to Chris were unnecessarilly combatitave and at least the words were ill chosen. I think you did a disservice to this board is commenting to him as you have.
Stakddek
