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DNA Brands, Inc. Message Board

  • jmaletta1 jmaletta1 May 29, 2014 3:18 PM Flag

    PR out on new distribution to Memphis, TN

    Don't think I can post link in here but I will try...

    Sentiment: Hold

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    • Question: They said that they are having a hard time meeting demand due to cash constraints. So how exactly are they going to distribute more product to TN and TX? I'm confused?

      • 3 Replies to jaxchase
      • Just my thoughts:

        Go read up on Asher Enterprises, Inc. and Curt Kramer, and check out the EDGAR schedule 13G filed on March 24, 2014. In my mind, this means DNA has not been able to obtain any credit through traditional routes (i.e. banks), and so they have resorted to going to a private equity investor (i.e. Asher Enterprises Inc.). Read through Asher's past history and how they have done this for many companies, some of which have been successful, others not so much. This is definitely a risky move, but it might be the only move they have at this point because although they are obtaining distribution agreements, its means nothing unless it turns into sales. But if you don't have the working capital to get the inventory on the shelves, its pointless how great the taste of the product is! This temporary facility from Asher Enterprises could be just what they need....short-term cash! But beware, if the company cannot repay the cash when it comes due, Asher takes control of basically 9.99% of the outstanding shares. At that point, who knows what happens. But also the company does have the option to repay them back, if they can.

        But also, in my mind, I don't think DNA management would be communicating new distribution agreements without already having entered into something more binding with Asher Enterprises, Inc, or at least in my mind, it would be irresponsible for them to do so.

        Bottom line - its a risky move, but do they have any choice at this point? Answer = NO

        Sentiment: Hold

      • They keep issuing shares and borrowing to cover it but can only get so much. Eventually if they can't keep raising money they'd basically go under. Their cash burn is alarmingly high.

      • I know... I asked the same thing... I am in agreement with you on that. If they are picking up more distribution I am guessing they have something in the works... but who knows.

        Sentiment: Hold

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