Replies to post #24849 on DNA Brands Inc (DNAX)

[BeasTrader]

Anyone with Pacer, check Palm County Florida Courts for any lawsuit filed by Melvin or DNA Brand?

[Ed the Trader]

"Yes, this is correct but didn't they have to get current to have any chance of getting new financing?"

Some have speculated that it would be necessary to acquire the OTC Current label to acquire any new financing. I really don't see why the OTC rating would make that much difference. DNA Brands cannot drive to a local bank and get a business loan because they have no revenue and little or no assets. Banks require 1-for-1 in existing liquid assets to loan money to businesses. So, if you want to borrow $50,000 from a bank, you need $50,000 in liquid assets THAT CAN BE FROZEN FOR THE DURATION OF THE LOAN so that there is a strong guarantee that the bank will be repaid.

At the other end of spectrum, there are individuals and organizations that will make high risk investments based on potential rather than performance. These investors know how easy it is for an OTC Pink to acquire OTC Current status so they will be neither impressed by it or concerned about the lack of it.

"What is the purpose of getting current if they have no means of growing this company once again?"

I never said that DNA Brands have no means of growing the company again.

What I said is that the September 9th filing clearly states that there is no longer any inventory, there currently are no funds to produce new product, and the company is essentially dormant. Those are almost exactly the words used by corporate management in the filing.

That does not mean that the company cannot acquire funding to take another roll at the dice.

The filing also clearly states that management is considering raising the 6 billion share A/S up to 10 billion shares. I believe that they will execute that raise in the A/S, and I believe that they will use financiers to exchange cash for new shares. In that case, the reason to acquire OTC Current status for DNAX would be make it easier for the financiers to unload their new shares of DNAX into the market because penny stock investors prefer companies with OTC Current status.