SOURCE: DNA Brands, Inc.

DNA Brands, Inc.

December 09, 2013 12:55 ET

DNA Brands Management Agrees to Reduce Dilutionary Effect of Its Recently Issued Series D Preferred Stock

Management Believes Action Valued at $3.5 Million Demonstrates Its Ongoing Commitment to Enhance Shareholder Value

BOCA RATON, FL--(Marketwired - Dec 9, 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 the Company's officers have voluntarily waived their conversion rights on 1.8 million shares of Series D Convertible Preferred Stock (the "Series D Shares"). Under the original terms of the Series D Shares owned exclusively by DNA management, each of these 1.8 million preferred shares could have been converted into 68.0271 shares of the Company's common stock. If management converted the Series D Shares it would have resulted in the issuance of 122,448,780 common shares valued at approximately $3,500,000 and would have represented approximately 50% of the shares outstanding as of December 6, 2013. Under the revised terms of the Series D Shares, management permanently waived their conversion rights to acquire these common shares. They have retained voting rights equivalent to all of the common shares that could have been converted.

"We believe the waiving of our right to convert our preferred stock into $3.5 million in common stock is yet again another very significant step of our ongoing efforts to increase share value. While there are no assurances, we believe this action, coupled with the modification of a significant portion of our existing short term debt into long term debt to strengthen our balance sheet, as well as our rebranding efforts will result in increasing the value of our common stock," said Darren Marks, Chairman and CEO of DNA.

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 eight delicious flavors including three new energy coffee products infused with Omega 3. Its citrus flavored energy drink was awarded the World's Best Tasting Energy Drink 2010 & 2012, respectively at the World Beverage Competition.

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.