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Replies to post #31458 on DNA Brands Inc (DNAX)
06/03/16 10:46 PM
06/03/16 11:32 PM
Look... when Adrian took over four months ago from Mel, the O/S was already just barely under SIX BILLIONS SHARES, the company had no revenue, no liquid assets remaining, no inventory, and was by Mel's own description, dormant.
So, things could not have gotten much worse.
The ONLY reason this business was worth anything is that it still owned the intellectual property that is the recipes for the award winning energy drinks.
To acquire the funds needed to reboot the business, Adrian had to raise the A/S from six billion to ten billion. Anyone with half a brain understood that this meant that Adrian intended to dilute the share structure by selling off another four billion new shares of DNAX. The funding to reboot the company was not going to magically appear out of thin air; dilution would be required.
Anyone buying or holding shares already knows all of these facts, or should have known. I dare say that anyone who is still holding shares is doing so because we believe in the potential of the product... and we want reasons to believe in the new management.
I also have to say that so far, I am underwhelmed by the abilities of that new management.
If they need to sell off all four billion additional shares in order to truly be able to afford to make any significant progress here, then Adrian should "man up" and just be straight with us about what is required, and what the plan is.
On April 20th, they said the plan was product production early 3rd quarter. Now, the latest PR has slipped that to 4th quarter with no explanation for the slip. I have tolerance for the reality that it is not unusual for business tasks to require more time than initially expected. I do not have tolerance for being stung along with endless delays by management that have no intention of executing a plan while they dump as many shares into the market as possible. Adrian has failed to give me cause to decide which scenario is occurring.
Why hasn't Adrian gotten the issues regarding having DNAX be current with OTC resolved? What is the hold up on that?
Why is there still no distribution agreement a month and a half after it was reported during the April 20th conference call that they were talking with a former DNA distributor about a new agreement? Did this fall through for some reason, or is this still a work in progress, and if so, what are the milestones remaining to close on that deal?
If that distribution deal did fall through, what is Adrian's Plan B?
We all know, understand, accept and support that Adrian needs to raise funds through dilution of the additional four billion shares of new stock. So, seeing that we have put our trust in him in this regard, why doesn't he trust us enough to ungag the transfer agent so we can track how things are progressing? The opacity of that issue unnecessarily destroys much of the trust that people have extended him.
Adrian should stop running from the overall share structure. We are big boys and girls and we understand that the bloated share structure must be corrected eventually. So, treat us accordingly and provide us with specific criteria regarding when he would, and would not, execute a reverse split.
Will he max out the O/S to ten billion and then hold the share structure for some period of time, or until some reboot milestones are reached? Without that type of intent explained to shareholders, a prudent shareholder must assume the worst case scenario, which is that a reverse split will happen immediately after the additional four billion shares are sold. That would also explain why Adrian does not want to ungag the transfer agent. If shareholders don't know the accurate share structure, they are easier to fool into buying and holding the entire four billion extra shares.
My tolerance here is rapidly getting too thin. Adrian better take steps soon to rectify the situation.
