Replies to post #19392 on DNA Brands Inc (DNAX)

[motorcityAce]

Hopefully updates coming soon..need back to back to send this soaring ;)

[Ed the Trader]

"Hopefully an update is coming soooon."

People need to get realistic about their expectations. In the investor update issued on the DNAX website on December 18, 2014, we were told:

On a more optimistic note, we would like to move forward with the development of a new and fully proprietary functional beverage which is not yet in the marketplace. We have received the support from a prominent member of the medical community to do a clinical study at little or no expense to the Company. If we are able to secure adequate funding, which is not a certainty, we can have this product ready for market in 6-8 months.

So, the earliest cause for an update that we might expect would be to notify shareholders that funding to roll out the new product has been secured.

However, if DNA management is able to secure funding for this product, where do you think DNA management is going to get that funding?

If we are correct, and the new product is marijuana-based, if DNA management walked into a bank and said, "Hi, we operate a business that is in recovery mode financially, we have almost no liquid assets (no pun intended), and we would like you to loan us money to produce, distribute, market and sell a product that is technically in violation of Federal law," what kind of response do you think they would receive?

Aside from the fact that DNA's current financial situation probably guarantees that they would not qualify for any form of conventional loans, if they attempted to contact ANY financial institution, regardless of which state the institution was located (and regardless of what the state laws are with regard to legality of marijuana), the officer at the financial institution would have no choice but to take the loan application and then immediately call the FBI to report DNA management for conspiracy to traffic illicit drugs. To do otherwise makes both the financial institution on the corporate level and the financial institution officer at the personal level accomplices in the Federal crime of conspiracy to traffic illicit drugs.

The same is true of any private investor.

Marijuana is still very much illegal at the Federal level. The only reason there is any "legal" market for marijuana at all is that Federal law enforcement has opted to look the other way but they can arrest and prosecute everyone involved in the marijuana industry any time they desire regardless of legalization at the state level. At the Federal level, you are talking about felony charges with real prison time so this is not a trivial consideration!

No, if DNA management secures funding for a new product that is marijuana-based, where that funding is most likely to come is from us, the shareholders, through the sale of additional stock. The company can safely acquire funding that way without explaining to anyone that the funding will be used to produce a marijuana product.

It is pretty likely that the huge volume spike that we just experienced included the introduction into the market of additional shares. Yes, that means dilution, but dilution for the purpose of production of a new, highly desired product is a good thing because the profit potential on the back side is much more than the loss of stock value on the front side.

Nonetheless, previous history has suggested that DNA management is highly sensitive to exposing any signs of dilution. Unlike how things are with most OTC Pinks, this management almost seems embarrassed when there is dilution. You have to remember that less than a year ago, DNAX was an OTCQB stock, and it was downgraded to OTC Pink when the stock price dropped below the new minimum one penny average price for an OTCQB stock.

So, it is unlikely that we are going to get any news release to confirm that DNA management has acquired the necessary funding as it would have to read something like, "DNA Energy Drinks is happy (but embarrassed) to announce that we have acquired the necessary funding to proceed with the production of our planned new product. We were able to secure this funding through the sale of additional new shares of DNAX stock. We thank our shareholders for their continued support and we apologize for the dilution in their stock value. We feel that the future profit potential will outweigh the loss in current stock value due to dilution."

Although investors would likely respond favorably to such news, it is very, very unlikely DNA management would ever release such a statement.

So, there is a good chance we will never receive any news about funding for the new product.

That means that we might not get any news until the new product is ready for market. The December 18th investor update said that it would take 6-8 months to have the new.product ready to market... and that is presumably 6-8 months AFTER funding is secured. If last week's spike in volume denoted the acquisition of funding for the new product, count 6 more months forward before we may hear any news.

So, don't be surprised if there is no news until at least the end of August, and don't be surprised if that news is is the announcement that the new product is ready for sale.

This company, unlike most OTC Pinks, has real products that are being sold RIGHT NOW. Such companies tend to generate news based on reality, not hype, and real news tends to take longer than does generation of hype. There is something about how real work takes time... more time than B.S. made up in the generation of hype as is typical of most OTC Pinks.

If you cannot tolerate letting your cash sit for another 6-8 months, you should probably sell now. It is not like the OTC market is real busy with the kind of high volume we saw this time last year. So, profit opportunities are now harder to find, and I don't feel like I am missing out on any profit potential elsewhere right now. Therefore, I am holding my shares of DNAX. As market conditions may change, I will reevaluate that decision but the opportunity to buy stock in a real company with real products at $0.0001 per share does not happen very often. If DNAX ever moves back to even $0.01, that is a 100x profit over today's PPS. How often is there are legitimate possibility to turn $1,000 into $100,000?