Applied DNA Sciences Inc (APDN)

[Shail]

Hi Johnsyn, WT, A1Mill, McSharkey and others,

I was trying to understand this deal with Crede for financing.

Having read the recent 10Q report, the little that I understood is as follows:

Crede was issued :

On Nov 29th 2012 - 10,752,688 shares @ .186 = $2 mn
On Jan 7th 2013 - 5,500 Sr. A Preferred = $ 5.5Mn

This explains the $7.5 mn financing deal.

On Jan 8th 2013, the 5,500 Preferred shares were converted to
25,462,963 common stock shares @ .216. APDN had this option to convert.

In addition, Crede was issued
Series A warrants of 10,752,688 shares @ .2232/share
Series B warrants of 29,569,892 shares @ .2232/share and
Series C warrants of 26,881,720 shares

Of the above, on Jan 22nd 2013, APDN repurchased the Series C shares for $50,000.

On April 25, 2013 Crede exercised the Series A & B shares totaling to 31,257,045 shares. This was said to be a cashless deal. This is something that I did not understand. If these shares were to be given at a stipulated price, why is it being termed as a cashless deal.

The only good thing about this is that if Crede has so many shares, I am sure Crede would be looking for a lot more from APDN

Hope I have not posed a silly question.