Replies to post #35957 on DNA Brands Inc (DNAX)

[Ed the Trader]

"He said the previous management GAGGED the TA. ..so the shareholders can stay in the dark....and he should have reversed that....most tickers that gagged their TAs are scams...imo...DNAX"

This is purely speculation, but I always got the feeling that Mel had the TA gagged more out of shame that the ticker was getting diluted so much (something 300 million diluted to 6 billion) than a real desire to screw shareholders.

You have to remember that up until about June of 2014, DNAX was an OTCQB stock, not an OTC Pink stock. This was a respectable company trading as high as about $1.15/share. The company has never had a reverse split.

After Eric Fowler, the CEO before interim CEO Mel Leiner, released a PR in the summer of 2014 that claimed that DNA had a distribution agreement with a Coca-Cola bottler, and that turned out to be FALSE... a flat out lie designed to intentionally harm the company, the stock crattered.

Talk on the street at the time was that the SEC might halt the stock. That didn't happen, but it really screwed things up for DNA.

In May of 2014, OTC Markets made a new rule that requires a ticker to be at least at one penny for one day every 30 days. Just as that rule went into effect, DNAX dropped to just below one penny for the first time, and the ticker was automatically downgraded to OTC Pink per the new rule.

Then, the massive dilution started in an attempt to keep things moving and keep the company alive.

Mel just always seemed really ashamed that their good business fell so far.

Obviously, their attempts to keep the company alive failed, they sold off their remaining excess inventory to Big Lots at a loss, and the company has been dormant since then.