DNA Brands Management Agrees to Convert Debt to Equity and Waive Accrued Salaries Totaling an Aggregate of $3.5 Million
Actions Show Management's Commitment to New Business Plan
BOCA RATON, FL--(Marketwired - Oct 22, 2013) - DNA BRANDS, INC. (OTCQB: DNAX), makers of DNA Energy Drink, the winner of the 2010 and 2012 "World's Best Tasting Energy Drink" title, today announced that in a series of transactions, the Company's officers have converted approximately $1.8 million in officer loans into 1.8 million shares of Series D Convertible Preferred Stock (the "Series D Shares"). In addition and as further evidence of their commitment to the Company, they have forgiven $945,000 in accrued officer salaries which represented the value of all of their compensation from 2010 through July 1, 2013.
Each of the Series D Shares can convert into 68.02721 shares of the Company's common stock. Additionally, the Company's officers have voluntarily agreed to a lock-up of these Series D Shares for a one year period.
Darren Marks, Chairman and CEO, stated, "During the past four years Mel Leiner and I have contributed nearly $2 million of our personal funds in the form of cash loans to DNA. In addition, since 2010, we have accrued all of our salary in order to allow the Company to devote its available financial resources to the implantation of its business plan. We want to send a strong message through these series of moves to our shareholders of our ongoing and unwavering commitment to make DNA successful, and to deliver shareholder value. We believe the strengthening of our balance sheet coupled with recent cost reductions to reduce overhead and our rebranding efforts during the past year positions us well going forward. We are optimistic about the future of our award winning brand."
Additionally other members of the Company's management who are owed in excess of $350,000 in accrued salaries, along with certain minority shareholders who hold notes in the aggregate amount of $350,000, have agreed to convert their accrued salaries and their outstanding notes into shares of the Company's common stock. As a result, the Company has reduced its total liabilities by $3,500,000 and increased its stockholders equity by an equal amount.
About DNA Brands, Inc.
DNA BRANDS, make DNA Energy Drink®, the 2010 and 2012 winner of the best-tasting energy drink at the World Beverage Competition. DNA Energy Drink® is a proprietary blend of quality ingredients in several delicious flavors. DNA is a proud sponsor of many action sport teams consisting of top athletes from Motorcross, Surf, Wakeboard and Skateboard, and has received tremendous TV and media coverage. "Awarded the World's Best Tasting Energy Drink 2010 & 2012 respectively at the World Beverage Competition"
For more information about DNA Energy Drink, its athletes and sponsorships, please visit www.dnabrandsusa.com or contact Darren Marks, President (954) 970-3826
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking,."Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward looking statements contained herein include (i) the Company's ability to generate significant revenues from its new product line, (ii) the Company's ability to obtain adequate financing to achieve its business plan (iii) a decision by the Company's distributors to carry the Company's products (iv) acceptance by consumers of the Company new flavors and branding (v) launching of three new coffee drinks and re-ordering the new rebranded five energy drink flavors, and (vi) and other factors without limitation which are detailed in documents we file from time to time with the Securities and Exchange Commission, which are available at SEC.gov.
