DNAP conference chat with craig hall...
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DNAPRINT GENOMICS, INC. - CONFERENCE CHAT WITH COMPANY REPRESENTATIVE, CRAIG HALL - THURSDAY, MARCH 15, 2001 - 4:30PM EST
<TJ^> GOOD AFTERNOON ALL
<TJ^> AT THIS TIME I'D LIKE TO INTRODUCE MR. CRAIG HALL.
<TJ^> MR. HALL, FEEL FREE TO TELL US A LITTLE ABOUT THE COMPANY.
<DNAPCraigHall> Great, this is my first attempt at a live chat so I appreciate your patience.
<TJ^> WE APPRECIATE YOU COMING.
<DNAPCraigHall> On behalf of DNAPrint Genomics I would like to thank Tony and Barbara for putting this live chat together and I will start by telling you a little bit about what DNAP has accompolished in the last 8 months.
<TJ^> CRAIG, THE FLOOR IS YOURS.
<DNAPCraigHall> Although we are still a young company, we have made big strides since going public in July of last year. First and foremost, Dr. Frudakis has assembled one of the top bioinformatics teams in the world.
<DNAPCraigHall> Dr. Frudakis has also presented at two of the premier Genomics conferences in London and San Francisco where he has shared DNAPrint's vision with the scientific communities...
<DNAPCraigHall> We initiated our first major partnership with Orchid Biosciences out of Princeton, NJ and filed our first provisional patent on our proprietary software in December...
<DNAPCraigHall> We are also completing our move into our new facility at 900 Coconut Avenue this week and bringing on another new member to our team from the University of Madras, India...
<DNAPCraigHall> Everything is now in place for DNAPrint to begin the discovery process and we are very confident that they will be successful.
<DNAPCraigHall> If anyone has specific questions I would be glad to answer them at this time.
<TT> Mr. Hall we have a list of questions we would like to present to you now, then afterwards have some of the guests voice theirs.
<DNAPCraigHall> ready when you are..
<TT> okay, let me begin with question #1
<TT> Hi. I am holding over 400K of DNAP and am very curious as to what drug and disease they are trying to work on with DNA? Thanks, Lowell (Stockholder101)Raging Bull
<DNAPCraigHall> Lowell, DNAPrint is planning on working on several different drugs, one is an anti-cholesterol drug called Lipitor. We are also looking at drawing associations between genotype and breast and ovarian cancer.
<TT> Second question.....
<TT> Is there any plan in place to increase the awareness of dnap to the general investing public after the 26th of March? Thank You, john
<DNAPCraigHall> We are receiving a lot of attention currently from the scientific and financial community. We will continue to present our platform and new discoveries at various conferences both national and international in the future. We are also planning to place targeted promotional advertisements with well respected media resources as significant events occur.
<TT> next question comes from a list gathered by our op, lavender.
<TT> I understand one of the beauties of DNAP is your ability to generate REVENUES, currently, while working discoveries and patents. Please explain, describe this REVENUE STREAM.....and its potential.
<DNAPCraigHall> DNAPrint will generate revenues through contract genotyping services coming from its partnership with Orchid Biosciences. Although this is an attractive source of revenue, the major revenues will come from discoveries resulting from studies that are currently underway. The revenues are virtually infinite as you cannot put a price on a cure.
<TT> How many patents have you submitted (last I heard was 40) and how many have been approved? If that information has been given before does it make sense to 'productize' that patent in a way that you can keep getting out the information on that patent in a form of 'news'? ongoing press releases?
<DNAPCraigHall> The number of patents is growing steadily. As we develop and patent new advancements on our proprietary software and other associations we will announce these in the form of press release. There are uncertainties within the scientific community as to how patents of specific genes will be handled.
<TT> Obviously your stock and the market is down. With the pent-up enthusiasm for this stock what in your opinion is needed to move it up to new record heights ? above 0.27?
<DNAPCraigHall> It looks as if we are in the grips of a bear market and unfortunately DNAP is not impervious to these conditions. However, I believe this to be a temporary phenomenon and our stock will do quite well over the long term. As with any company that is attempting to do something that has never been done before there is a higher degree of risk, but with that higher risk comes higher reward.
<TT> Can you tell us how much of the new restricted issue has been sold? If not in numbers percent will be fine.
<DNAPCraigHall> The private placement has been effected by the recent downturn in the stock price, but we have secondary funders that are still very interested in participating in an offering. I feel confident that the placement will be filled in the near term. I will also add that we are not in the dubious position of needing money right now and have the ability to wait until the market improves.
<TT> How many employees do you currently have and what are your open requisitions? Is your 'heavy team' in place, relocated, working on the next phase of your discoveries and income stream?
<DNAPCraigHall> We currently have 10 employees of which most are Ph.D level. We are adding another member to our team this month that rounds out our bioinformatics team. With the facility now complete we are ready to get down to the "heavy lifting". I welcome anyone to come by and view the scientists at work. I think you will be impressed.
<TT> How many projects is DNAP currently working on?
<DNAPCraigHall> DNAP currently has several projects in place... as announced recently with the Univ. of Miami and the Jacksonville Research Association and Geospiza, Inc. We will be announcing several other studies over the next year as they are finalized.
<TT> Can you elaborate on the time factor of the project between DNAP and the University of Miami stated in your Dec. 13th press release and what progress has been made in the genotyping and genetic analysis of the ovarian cancer specimens? Will this create a revenue stream for DNAP?
<DNAPCraigHall> This is more of a scientific question that I would feel more comfortable having Dr. Frudakis answer. In my conversations with Dr. Frudakis he is very encouraged over their recent progress. And yes, this is definitely a revenue stream as any associations or discoveries resulting from this association will add to our growing database of intellectual property.
<TT> Regarding the strategic alliances reported in your March 7th press release, is this in addition to the alliances you speak of in your 8-K12G3 SEC filing of 11/30/00 under Personalized Medicine and Short Term Revenue Potential?
<DNAPCraigHall> I wish I could be more specific in my answer to this question but my hands are bound by Reg. FD and I cannot discuss the associations we are currently negotiating, but yes... we have several more alliances underway.
<TT> In your successful presentation of the company during the Cambridge Healthtech Institute Genome Tri-Conference 2001, it was stated that the meeting resulted in several new contacts and strategic opportunities for the company. Can you elaborate on this and does it have the potential to meet your need for additional funding as stated in your 8-K12G3 SEC filing or has this need already been met?
<DNAPCraigHall> Again I can only say so much, but Dr. Frudakis extended his trip an extra 2 days to meet with interested parties. DNAPrint has capital commitments to get them through the end of 2001 and we plan on reentering the market for additional capital when conditions improve.
<TT> Is DNAP still on track with their goal to achieve profitability by the end of 2001 and has the company established a date for releasing the next financial report?
<DNAPCraigHall> There is a chance that DNAP will be profitable by the end of 2001, but our goal is to obtain profitability in 2002. The market that we are working in, that being personalized medicine, is in its nascent stages. Although many analysts place its potential in the hundreds of billions of dollars. We plan on grabbing a sizable piece of that market.
<TT> We have a couple more more questions, then we will be taking questions from our guests.
<DNAPCraigHall> good, this is fun.
<TT> glad you are enjoying it!
<TT> What are the latest milestones in the company's ongoing research projects? Are there any new revenue generating products/services/licensees coming out within the next 3 to 6 months?
<DNAPCraigHall> I cannot talk specifically to this, but I think everyone who follows this company will be excited to hear what we have to say over the rest of this year. I believe the market for personalized medicine has more potential then what we have seen in information technology with the internet revolution. How can the investment community not get excited about companies that will find cures for diseases? The next 5 years will be like nothing we have ever seen before in medicine.
<TT> Regarding the company's common shares available for trading, which I believe is roughly around 135 million, has there been any change in the company's view of a reverse split if it represented a clear benefit to the company and it's shareholders such as NASDAQ listing and/or secondary funding?
<DNAPCraigHall> The company stands firm that at this time there is no need for a reverse split. However, if it was a benefit to the company .... say if it were needed for NASDAQ listing or a large secondary funding then it has to be considered.
<TT> Appreciate if you could tell us the authorized, outstanding, and the share float.
<DNAPCraigHall> I am going by memory, but I believe that there are about 144 million in the float, 269 million that are issued and earned (with another 115 million held in escrow to be paid out when DNAP meets certain EPS numbers). The authorized is 500 million.
<lavender> Question from Tars: Time-frame, in your planning, for being listed on NASDAQ.
<DNAPCraigHall> Our goal has always been NASDAQ listing and we believe that is very achievable in the next 12-24 months. That could be sooner if we were to hit a big discovery this year.
<TT> Question from good2bhumble: You spoke of Knobias.com doing a video on DNAP in march. Is that still on?
<DNAPCraigHall> good2bhumble... yes I have spoken several times with Marshall Roddy at Knobias and they will be down sometime in April to do their video tour. Knobias is a well respected firm and was just featured on CNBC.
<TJ^> Question from Billycal: Why do you believe DNAP may be an exciting investment vehicle in the next 12-18 months?
<DNAPCraigHall> DNAP has really set itself up to be a leader in its field. I feel it is an excellent investment... just make sure you understand the risks.
<lavender> Question from the_Spook: As I understand it you have 6-9 months of (post pp). How do you plan on drumming up additional funding w/o further diluting the outstanding shares?
<DNAPCraigHall> It is impossible to raise more money without dilution. Our goal is raise the majority of money when the stock price is higher to minimize dilution.
<TT> Question from UK: Do you have any financial backing from any investment banks?
<DNAPCraigHall> I am talking with investment banks and larger VC firms everyday, but to this point the only outside investors are Tampa Bay Financial and Orchid Biosciences.
<lavender> Question from Hawgbhead: Does Dr. Frudakis feel he has a realistic chance to discover the cure for breast or ovarian cancer?
<DNAPCraigHall> I don't know that DNAPrint will necessarily find a cure for cancer, but I think they definitely have a chance of drawing an association between someone's genetic make-up and a certain cancer. That would enable them to make lifestyle changes.
<TJ^> Question from melvonator: Is there a different standard in testing procedures DNAP is investigating as opposed to medical trials?
<DNAPCraigHall> I'm not sure I understand the question... can you be more specific?
<DNAPCraigHall> If melvonator is talking about FDA standards, we are not subject to their regulation.
<melvonator> My question was if long term trials are necessary to prove the safety or validity of DNAP processes.
<DNAPCraigHall> Right now we are just subject to review from our peers... no regulatory body.
<lavender> Question from good2bhumble: are we still one of the few companies, or are there more now that are looking at existing drugs on the market?
<DNAPCraigHall> good2bhumble... yes, we are the only one that I know of, but I'm sure there will be more as the marketplace expands.
<DrE> Question from Manny: What proprietary techniques are you using that other companies could not be using? How is DNAP "different" or "ahead" of other companies in their area?
<DNAPCraigHall> The main proprietary techniques that we employ is through our patented software that is aimed at drawing associations between genotype and phenotype.... Our competitive advantage lies in the team of mathematicians we have brought on. These people are not easy to find! And remember, that these mathematicians would command huge salaries elsewhere, yet they are working for us for a very small salary and a restricted stock position.
<lavender> Question from the_spook: is it correct to say you have 6 - 9 months worth of funding?
<DNAPCraigHall> Yes, DNAP has commitments to last through December of 2001.
<TraderHugh> question from LoadsaHoynk: why would I as an investor want to invest in this company and not in any of the several companies out there? What, in your opinion, makes DNAP so special especially at this early stage? (several other companies in this genomics sector, that is)
<DNAPCraigHall> The level of scientific talent and mathematical talent is certainly one reason why the company has gained recognition within the Genomics community. I also believe we are trading at an attractive level. The money is going to come from making sense of all the information from the recently completed Human Genome Project.
<TT> Question from cartas: do you think the scientific community have knowledge about the technique of SNP? Also from cartas: have you prove to realize one test with dnap?
<DNAPCraigHall> SNP's are seen in the scientific community as holding the answers to many of the questions that have stumped scientists for years...
<lavender> Question from Good2beHumble: How is the proposal to the Ministry of Science and technology of Malaysia and the Malaysia company coming along?
<DNAPCraigHall> We are very optimistic about our associations in Malaysia. I cannot go into detail at this time but we will put out news as associations are completed.
<TJ^> Mr Hall, I understand more MMs (Market Makers) will be on-board this month, do you feel this will help DNAP? It seems with the one MM on board now, HERZ appears to be creating panic selling, and stands to make out well for his firm? Your view?
<DNAPCraigHall> Within the next 10 days we will have more than 10 other market makers "piggyback' on Herzog's registration. I cannot comment on possible manipulation by a market maker. If that is the case then it can only be short term in nature.
<TT> question from medguy: how many high-density SNPs does DNAP have mapped?
<DNAPCraigHall> As for the high-density mapping of SNP's ... that is a question for Dr. Frudakis.
<TT> another question from cartas: what stakes can DNAP offer to a foreign bank? Would DNAP entertain investment from a foreign bank?
<DNAPCraigHall> We look at it like there is money and good money. We will be willing to talk with any institutions about possible investment in DNAP but will only do what is best for the company.
<TT> Question from BillyJoBob: What changed so that profitability has been moved to next year?
<DNAPCraigHall> It is impossible to predict the result of a scientific experiment before it is done and our profitability is totally dependent on the outcomes of our studies.
<TT> Question from medguy: Could you tell us how much capital has been raised from the private sector?
<DNAPCraigHall> About 1.5 million to date.
<lavender> Question from Good2beHumble: In order to be successful, will you need the "supercomputers" to do your analysis?
<DNAPCraigHall> Yes, we will need more computing power than we have and are in the process of obtaining the necessary equipment. We have talked with IBM about our computing needs and will continue to work closely with them.
<lavender> Question from Sanom: What effect has the decline in the stock price had on the PP?
<DNAPCraigHall> The price of the stock has not had a positive effect on the PPM. We will hold in abeyance until the market conditions improve (as is common on Wall Street as well.
<TT> Question from BillyJoBob: reverse split would move company closer to NASD requirements-why not now, say 1-10, and get closer to competition's o/s?
<DNAPCraigHall> BillyJoBob... we do not feel that a reverse split helps the company at this time. We have said repeatedly that we would only consider if it was in the company's best interest.
<TT> another question from BillyJoBob: Did Dr. Kim's departure delay or hinder where DNAP thought where it would be now?
<DNAPCraigHall> no, Dr. Kim has already been replaced and our team is very synergistic.
<TT> Question from Medguy: Craig you have stated the need to have a machine 100x faster than orchid. How much will this new machine cost and why did dnap buy it in the first place.
<DNAPCraigHall> This is not correct... the Orchid machine that we have now is the state of the art machine and there is not a better one. The machine that we need that is 100X faster than our current one works in conjunction with our Orchid machine and cost about 200K. We plan on purchasing this machine in the next few months.
<lavender> question from justswell'84: Will dnap look at other statens besides Provocal?
<DNAPCraigHall> justswell'84... that's a question for Dr. Frudakis.
<lavender> Question from Melvonator: Would a r/s be put before the stockholders for approval? I can assure you most long positions do not want to see one.
<DNAPCraigHall> A reverse split would have to be approved at a shareholders meeting.
<lavender> Question from cuckoo4dnap: Will dnap continue to grow internally or is a buyout inevitable?
<DNAPCraigHall> DNAPrint's goal is to grow internally, but if the company receives a buy-out offer we have the fiduciary responsibility to do what is in the best interest of the shareholders.
<lavender> question from bullticker: What is the strong connection between DNAP and the Indian scientific community?
<DNAPCraigHall> Dr. Frudakis has had a relationship through his past dealings at Corixa and his research at the University of Cal-Berkerley.
<TJ^> Question from Zeze: Does DNAP have any plans for dealing with RB (Raging Bull) bashers that state out-right lies? Will DNAP seek any prosecution?
<DNAPCraigHall> It is my understanding that RB is pretty much an un-policed board. Unfortunately we do not have much recourse at this time.
<lavender> Question from kcarlton: at what level does dnap stock price need to be to be listed on NASDAQ?
<DNAPCraigHall> I believe that the stock price must be $4 for NASDAQ small cap.
<TT> Question from BillDollar: Why did Dr. Kim leave?
<DNAPCraigHall> Dr. Kim's departure was in the best interest of both Dr. Kim and the company.
<DrE> Question from Snowcloud: Can you tell us anything at all about the short term (6 mo) research project Dr. Frudakis mentioned at the Open House?
<DNAPCraigHall> Again, I would defer the research project question to Dr. Frudakis.
<lavender> Question from good2bhumble: What conference will we be most likely attending in the near future? and what does DNAP consider to be their biggest obstacle to be successful?
<DNAPCraigHall> We will announce any and all conferences in a press release. DNAPrint's biggest obstacle may be just time...
<TraderHugh> question from justswell84: I had my thyroid zapped during Desert Storm and I continually have to adjust my medication. Is DNAprint working in this area?
<DNAPCraigHall> We are optimistic that these discoveries will be made... we just want to be the first to the punch.
<lavender> question from kcarlton: Mr. Hall/Dnap, do you think it is realistic, given market conditions to think dnap could reach $4. level in next 12 - 18 months?
<DNAPCraigHall> The ability to reach $4 in the next 18 months is optimistic but possible if we are able to make some larger discoveries.
<TT> Question from BillyJoBob: What would be the time horizon you would tell somebody thinking of investing in DNAPrint Genomics?
<DNAPCraigHall> In a stock such as DNAP, I think it is important to understand that success is not had overnight and investors should think long term (2-3 years) when investing in any company in this field.
<lavender> Question from cuckoo4dnap: have any of your friends or family invested in dnap?
<DNAPCraigHall> yes
<TJ^> MR HALL WE WOULD PERSONALLY LIKE TO THANK YOU FOR YOUR TIME AND EFFORTS. PLEASE FEEL FREE TO COME BACK *ANYTIME*
<DNAPCraigHall> I would like to thank everyone for their questions and faith in DNAPrint Genomics.
<DNAPCraigHall> Thank you Pat, Tony, and Barbara for putting this together!
<TraderHugh> Mr Hall thank for an excellent presentation! clap!! clap!! clap!!!
<TT> Mr. Hall do you think Dr. Frudakis would enjoy a session here with us?
<DNAPCraigHall> I would be glad to talk with him about it.
<TT> thank you very much.
<DNAPCraigHall> Thanks and goodnight.
<TT> good night.
*** DNAPCraigHall has quit IRC (Leaving)
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