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i assumed that with 2.4 mil volume, there must have been some yorkville selling...but it doesnt look like it...
"This is all absolutely ridiculous"
the idea that the kings group would test the fabric with regular silk but not with ds is what is ridiculous...
this part is mostly testing the mill's capability...their ability to get the design right, the right weave and the right blend...
the kings group will likely make a few different requests to see if the mill can adapt and do different weaves and such and still make a fabric that the kings want...they want to know that the mill can handle different specs and needs...
Freaking logical if you think about it. The traditional silk is the cheaper stand in.
Several months ago, the KBLB share count was at 854,410,000. Today it is at 897,551,753. There has been a 5.01% share dilution in just a few months. How much more dilution are we getting before they sell enough shares to pay off their loan at the end of the year?
By now I would imagine the answer to what is the best blend has been answered and preparations to begin preparing thousands of yards of blended material has started. We have the silk as previously stated and by now either know what will be the best blend or will know in the next few days.
This is the beginning of the roll out we have waited for.
From IR:
Rather than waste our spider silk, the Companies first wanted to experiment with traditional silks to determine the best ratios for the desired blends. With the weavers now open they were able to do that. The Company has Dragon Silk to go now, so, after the PL Kings side provides feedback, they will begin the blended Dragon Silk fiber fabric runs.
Best regards, Ben Hansel 720.288.8495
To complain that these samples could have been made and delivered months ago is a stretch to say the least.
This has to be the biggest joke of a PR yet!
announces today that it has delivered the first fabric samples to Spydasilk Enterprises...These first sample fabrics blend traditional silk with cotton to produce a composite, blended material
Once these sample fabrics have been tested and approved, the Company plans to begin weaving several thousand yards of finished fabric incorporating its recombinant spider silk.
https://www.sgpbusiness.com/company/Spydasilk-Enterprises-Pte-Ltd
Everyone has their own trading strategies. They can educate themselves. If they are smart, they should be up more than 1500% in the last 5 years.
Since October 2020, how many times has the company claimed anything was imminent?
What does the data since October 2020 "appear" to point towards?
If that data and the company's actions since October 2020 leave the impression that we are all being duped, we all have the option to relieve the pain, sell and move on. The choice has always been ours to stay or go.
Not everyone can attest to be recipients of the monumental gains you speak of.
“Today's PR was just saying that what the previous PR announced was going to happen, has now happened.”
And until this happened where was KBLB supposed to ship spidersilk to? M’s office?
Today’s news is huge with Kim announcing KBLB now has established a way to get spidersilk all the way from the cocoon to the retail customer and will be able to profit every step of the way. Why go to the trouble of establishing a supply chain if you have nothing to supply it with? Tells me everything is a go at Prodigy.
Looks can be deceiving. This PR did not break significant new ground. No argument there. What was the interpretation of the previous releases regarding securing funding, increasing staffing, securing materials, accelerating production schedules, etc? What do those sound like? They "sound like" the company is growing, expanding and producing at even greater levels than they anticipated, don't they? not all hope is lost.
I understand the confusion. Three months ago they did announce they were forming a brand called Spydasilk. Establishing a brand doesn't equate to establishing a company based on the brand, though.
ANN ARBOR, Mich. , Jan. 26, 2021 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“Company” or “Kraig Labs”), the biotechnology company focused on the development and commercialization of spider silk, announces that it is forming a joint venture partnership with MtheMovement, an eco-friendly luxury streetwear apparel line, part of the Kings Group of Companies and its affiliated companies (“Kings Group”). The joint venture will develop and sell Kraig Labs’ spider silk fibers under the new innovative apparel and fashion brand, trade named SpydaSilk
Spydasilk Enterprises is new. Did not exist until today. That the whole point of the PR.
ANN ARBOR, Mich. , Jan. 26, 2021 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc... announces that it is forming a joint venture with... Kings Group. The joint venture will develop and sell Kraig Labs’ spider silk fibers under the new innovative apparel and fashion brand, trade named SpydaSilk
I think you are quite mistaken. Whats new is the JV company actually exists now. It didnt back in january. All they did in january was agree to form the company.
Why hasnt Kings PRd it?
Maybe because it is midnight in Singapore and a PR at midnight on a saturday is not the best time to release a PR. It will be released in Singapore at around 4 pm pacific time or they may wait till monday.
And Kim paid for it because he is obligated to release material information to shareholders and FB is not good enough when they only have 600 followers.
JMO but i loaded up at .148
I am completely sure that Kim's hands are being tied by Maxim's attorneys and KBLB's own attorneys regarding production statements.
The news is different from January’s. The market isn’t getting it.
I like it. .. just not moving the sp. There was a time that this news would be worth 5-10 cents. The market really has soured on Kim. It’s still saying ‘SHOW ME THE MONEY!!!’. And, M/Kings as a name doesn’t make anyone say let me sell all my other winners and push all in here and now.
Yep. Like I said, people seem to miss the difference between just a plain old partnership agreement and actually forming a joint company. I didn't take it as such when KBLB released the information then. I'm sure they are deeply apologetic to those who read into it more than what was actually announced at that time. Kudos to you for your ability to see into the future. Wish you would have shared it with the board at that time. Maybe it would have sparked a rise in share price for the day.
Hopefully when production is announced towards the $3M that's to be completed towards their $40M contract, investors don't have the same thought of "uh, yeah, we already knew they were going to do this."
The company announces they have upgraded their Strategic Partnership into a full-on Joint Venture Company with the entity they formed the Strategic Partnership with and it's poo-poo'ed. SMH. Nowhere in the initial agreement did it say the two SEPARATE companies were going to combine their efforts into one JOINT company. Yes, they were going to strategically work together. But, join forces under one roof? Never mentioned. Now it is, and it's a very strong business move, but, it's tempered down. Wow.
ANN ARBOR, Mich. , Jan. 26, 2021 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“Company” or “Kraig Labs”), the biotechnology company focused on the development and commercialization of spider silk, announces that it is forming a joint venture partnership with MtheMovement, an eco-friendly luxury streetwear apparel line, part of the Kings Group of Companies and its affiliated companies (“Kings Group”).
The joint venture will develop and sell Kraig Labs’ spider silk fibers under the new innovative apparel and fashion brand, trade named SpydaSilk™ and potential other trademarks to be announced. All intellectual property related to SpydaSilk™ will be jointly owned by Kraig Labs and Kings Group . The deal combines Kraig Labs’ industry leading fibers with Kings Group’s business skills and regional enterprise expertise, creating what we believe will be a strong vertical integration for both companies.
Under the terms of this agreement, Kraig Labs granted the joint venture and the SpydaSilk brand an exclusive geographic license to all Kraig Lab technologies for the ASEAN region, in exchange for a 4 year firm commitment to purchase up to $32 million , with an additional projected purchase of $8 million , of Kraig Labs’ raw recombinant spider silk, with an initial payment of $250,000 .
“SpydaSilk’s mission is to create high-impact products and technologies, so partnering with Kings Group , which we believe has strong product development expertise and intense understanding of ASEAN market, is a powerful combination that we believe will drive SpydaSilk’s sales and innovation,” said Kim Thompson , Kraig Labs’ founder and CEO. “Kraig Labs has always been proud to maintain our vanguard position in the spider silk space; this agreement strengthens our leadership role with a partner who shares our vision and places Kraig Labs and Kings Group on the best path for success. Spider silk is among the strongest fibers produced in nature, and the agreement represents the world's first large-scale commitment to purchase spider silk fibers”
The new SpydaSilk alliance combines the strengths of both companies and calls on Kraig Labs to provide fibers and materials expertise, while Kings Group will lead the marketing, sales, and distribution. The two companies will work together to increase Kraig Labs’ product development agility and production scalability.
Under this collaboration, Kraig Labs and Kings Group believe that the material will not only be applied to apparel; the joint venture is also exploring uses to enhance other industries such as building construction and medical industries.
" Kings Group is dedicated to helping unleash the benefits of spider silk and this bold enterprise, the unveiling of the SpydaSilkTM joint venture, significantly accelerates that goal. We believe that we will help improve the world through innovation to drive profitable growth, reduce emissions, enhance customer loyalty, and create long-term shareholder value," said Mr. Walter Wee , Chief Investment Officer of Kings Group . "In researching various spider silk technologies, we came to the conclusion that Kraig Labs is the leader. Our agreement with Kraig Labs represents the first large-scale commitment to spider silk commercialization and we could not be happier to begin this part of our SpydaSilk™ journey."
Where in the $40M PR was it mentioned these companies would form a JOINT Company? Therein lies your BIG difference between the two PR's. And, no matter statements to the contrary, in the Business World, moving a Strategic Partnership from the simple Partnership state to the Joint Venture Company state, is HUGE!
ANN ARBOR, Mich. , Jan. 26, 2021 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“Company” or “Kraig Labs”), the biotechnology company focused on the development and commercialization of spider silk, announces that it is forming a joint venture partnership with MtheMovement, an eco-friendly luxury streetwear apparel line, part of the Kings Group of Companies and its affiliated companies (“Kings Group”). The joint venture will develop and sell Kraig Labs’ spider silk fibers under the new innovative apparel and fashion brand, trade named SpydaSilk™ and potential other trademarks to be announced. All intellectual property related to SpydaSilk™ will be jointly owned by Kraig Labs and Kings Group . The deal combines Kraig Labs’ industry leading fibers with Kings Group’s business skills and regional enterprise expertise, creating what we believe will be a strong vertical integration for both companies.
ANN ARBOR, Mich. , April 09, 2021 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“Company” or “Kraig Labs”), the biotechnology company focused on the development and commercialization of spider silk, announces that the Company, together with M the Movement, Kings Golden Harvest Pte Ltd (“Kings Group”), has established Spydasilk Enterprises Pte. Ltd. (“Spydasilk Enterprises”) as a Singapore based joint venture.
I didn’t see the word dilution mentioned anywhere in that company quote. Could this be fake news? Did CNN and MSNBC put this out?
Yep, heard that, too. But...
Could also be corporate deflection. Not good to say they're only working with KBLB.
Steve Layton, Polartec President says "there's a lot to like about Spider Silk."
But that's about all he would give up. Looks like Polartec and Milliken are in on the whole "keeping things quiet" stuff. Bastards! LOL
Most likely an announcement will be made focusing on that by itself rather than lumping it in with something like this.
Well, I guess this from the event page,
Following these brief introductory remarks, Royal College of Art lecturer, journalist and performance textile sustainability expert Charles Ross will moderate a discussion with the following leaders:
? Steve Layton, Polartec President
? Jeff Strahan, Ph.D., Milliken and Company Director of Research, Compliance, and Sustainability
? Dr. Morton Barlaz, North Carolina State University Professor and Head of the Department of Civil, Construction, and Environmental Engineering
? Eva Karlsson, Houdini Sportswear CEO
? Bruno De Wilde, Organic Waste Systems (OWS) Laboratory Manager
“KBLB & Maxim will set the price of the offering, but they have to make it lower than the post-r/s price, or no one will buy it.”
No they don’t. They are getting the stock and a warrant. If you were to offer me a stock and a warrant for the current price of the stock I would take it in a heartbeat. In fact, I just might.
Each Unit consists of 1 share of our Class A common stock, no par value (the “Common Stock”) and one warrant (a “Purchase Warrant”) to purchase one share of our Common Stock at an exercise price of $5.25 per share (100% of the price of each Unit sold in this offering based on an assumed initial offering price of $5.25 per Unit, the midpoint of the anticipated price range). The Units have no stand-alone rights and will not be certificated or issued as stand-alone securities. The shares of Common Stock and Purchase Warrants comprising the Units are immediately separable and will be issued separately in this offering. Each Purchase Warrant offered hereby is immediately exercisable on the date of issuance and will expire five years from the date of issuance. The public offering price will be determined by us and Maxim Group LLC (“Maxim”), as representatives of the underwriters, taking into consideration several factors as described in “Underwriting – Determination of Offering Price”, and will not be based upon the price of our Common Stock on the OTCQB Marketplace (the “OTCQB”).
Your numbers are way off. You are discounting the price of the shares in the offering by a huge amount and that is why your numbers are off. It’s not the 100:1 split causing this it is the discount that you are figuring. No way is there going to be that big a discount, if any.
If I offered you a trade where you were to give me all your shares and in return I would give you the same amount of shares plus that many warrants to be able to buy the stock at a slightly higher price some time in the future would you take my offer? There’s your discount!
This is what I worry about...
Offering Price and Size
In a non-dilutive offering in which shares are offered at current market value, there should theoretically be no effect on stock price. However, in a dilutive offering, the share price that a secondary offering is made at has a significant effect on the price of existing shares.
The least disruptive scenario is when a company offers the new shares at a value that accounts for the current market value minus a discount for the expected dilution effect. However, if a company offers shares at a further discount, it can sharply drive down the price of a stock as buyers will refuse to pay more than the price of the secondary offering until after the offering is made. Even after the offering is executed, the price of the stock will be lower than dilution can account for since traders who bought during the offering can sell at below the pre-offering market price and still make a profit.
The size of the offering – that is, the number of shares being offered – amplifies these effects. If the offering is small relative to the number of outstanding shares, the dilution and the effect of discounted pricing will similarly be small. On the other hand, if the offering is large, the price dilution effect will be significant and any discount in the offering price can have a significant effect on market value.
This still doesn’t mean the value of your shares are worth 7.35% less because you still have to calculate in the value of the $10 million added to the market cap.
So keeping the price low before the offering is hurting current share holders.
That's a little relieving. But the S1 says
We intend to effect the Reverse Stock Split of our outstanding Common Stock immediately prior to the effective date of this registration statement
After a 100:1 RS the stock price would immediately be 100 times current price, or $16.25 at the current price of the stock. Why in the world would KBLB set an offering price at $4.25 if the stock price is $16.25?
You also need to figure the value of the $10-23 million that is received for the dilution and what that adds to the market cap. So yes, your math is using incorrect assumptions.
Those numbers would be doubled once one include the warrants, since the warrants are exercisable immediately. So 8.92% dilution would become 17.84% dilution at a 40:1 reverse split.
"...each Purchase Warrant providing the right to purchase 1 share of our Common stock. Each Purchase Warrant will have an exercise price per share of $5.25 per share, the midpoint of the price range set forth on the cover page of this prospectus, will be exercisable on the original issuance date, and will expire on the fifth anniversary of the original issuance date."
Can someone check my math. I looked more at the S1 offering and I'm a little more concerned now than I was before. Actually, a lot more concerned.
So here are some basic stats using the current share count and $0.17 for the price per share. I'm using 0.17 because it's around where the price has been hovering lately.
Current Shares Current Price
854,410,000 $0.1700
Split Ratio 1:X 10 20 30 40 50 100
New Total Shares 85,441,000 42,720,500 28,480,333 21,360,250 17,088,200 8,544,100
After Offering Sale at $10 Million of Shares Sold at $5.25 (1.905 million shares)
% Share Dilution 2.23% 4.46% 6.69% 8.92% 11.15% 22.29%
New Total Shares 87,345,762 44,625,262 30,385,095 23,265,012 18,992,962 10,448,862
WebSlinger, thank you for the example. I do want to look into it more, even if just for my own curiosity. This could be an example of the 10-day requirement not being enforced by FINRA or the SEC, and I very well may be wrong. However, there were several filings prior to the actual split indicating the approval and intent of a reverse split.
https://www.sec.gov/Archives/edgar/data/844856/000157104916013254/t1600789_8k.htm
The filing above was filed on March 21st, 2016 (10 days before the r/s effective date), and it states
On March 21, 2016, Vapor Corp. (the “Company”) held a special meeting (the “Special Meeting”) of its stockholders. At the Special Meeting, the stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) to effect a reverse stock split of the Company’s common stock at a ratio between 1-for-10,000 and 1-for-20,000, such ratio to be determined by the board of directors of the Company (the “Board”) (the “Reverse Stock Split”).
The letter you quoted from the SEC was dated Feb 1st, not the 4th. To which they responded 1 day later with
After reviewing your comment we see that we included the following statement in the Information Statement regarding the votes obtained for the corporate actions at issue, “633,037,254 votes (which includes 2 shares of Preferred Stock, since the Preferred Stock votes together with the Common Stock and each share of Preferred Stock is entitled to 200,000,000 votes) or 50.5% of the voting power outstanding on such date, approved the Reverse Split, the Reduced Voting Power and the filing of the Amendment. Series A Preferred Stockholders holding 2 shares of Common Stock or 100% of the Series A Preferred Stock outstanding on such date, also approved the Reduced Voting Power and the filing of the Amendment.” 633,037,254 represented 50.5% of the voting power outstanding on the Record Date. As discussed during the Conversation, the Information Statement disclosed that there were 1,254,410,001 votes outstanding on the Record Date and that Mr. Thompson was only one of the shareholders who provided consent for the corporate actions at issue.
Dear Mr. Rice:
We have completed our review of your filing.
"First, making the stock pop and enacting the r/s immediately isn't an option."
which is why i didnt use the word immediate...
"The effective date of a r/s cannot be less than 10 days after the effective date is announced."
well there are exceptions to every rule...