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Ok that's pretty much from rumor control.
I'm not really looking for opinion. I am looking for example.
You used the term "legit financing" that doesnt dilute shareholders.
I was looking for an example.
I have never seen a legit financing deal where the financier didnt get something for his efforts.
If not a share of the company its direct interest.
I dont see a way that we have the ability for an interest based loan.
Even if kim did as mojo suggested and put his personal shares up as collateral he is still going to need to be given something to compensate his personal loan to the company.
Is there any example on non dilutive financing you can show me.
I would like to believe there is but my logic circuits wont allow me to
Hope can you define "legit financing" that doesnt include dilution?
I have never seen financing that doesnt take a piece of the pie other than direct loans for interest which I cant see KBLB qualifying for just yet
Well you kinda asked then answered your question.
"Why would a scientist/geneticist have to come up with a protocol if its been done for thousands of years?"
Answer:Quality control for look and feel isnt even close to quality control for strength and elasticity.
But regardless of what property or species it's still the same thing.
You choose the desired traits and breed accordingly.
Not all traits are visual. Some are sense of feel some are strength thickness and length.
In mundane silk look and feel are the most important but strength is also important.
Not important enough for in depth testing.
A scientist is needed because our silk the strength and look and feel are in a different order of importance.
That strenght(toughness) is measured by scientific equipment and not eyes or fingers.
It's still the same process used for eons by humans to produce everything from dogs and corn to roses and silkworms
If you worry about the cost try investigation into how the have controlled genetic drift for the past 5000 years with silkworms.
Silk farms have quality control. They always have.
Its improved over the centuries but it is literally the exact same process Kim will use.
It will cost exactly the same as it currently does. Maybe slightly more since the person testing will be a scientist and not just a village elder who has grown silk all his life.
It really is a non issue.
You wont ever hear Kim say its "cured" it isnt a disease or flaw.
It's just how you farm any living thing
As one who bought over 10 years ago I would say you are right. I expected to be further along.
I originally gave Kim 7 years.
But then we ran into a wall with VN.
I was not expecting that set back.
Kim didnt either. I think that's what lead him to a pilot plant.
IMO that was done inside the USA and failed because it basically cant be done here on any real scale.
That was when Kim expected to begin production but the GMO regulations stopped everything.
Had the delay not happened kim would have never needed a RS.
But obstacles happen. We are past it. Time to move forward and RS if needed
one cant expect to jump out of the bushes and yell "reverse split today" and expect that their share price, outstanding shares etc will just magically adjust...these things take time, advanced notice and the numbers involved have to be known...
You act as if Kim ever implied genetic drift didnt exist. That would be a lie. It's impossible not to have it. Kim never had to "admit" something known to the genetic science community.
But us common folk need to be informed because we are ignorant to things like this.
So kim informs us of how the process works.
He knew years ago he would need a protocol in place. Because it is a necessity is any GMO
That isnt exactly true.
Gene substitutions take place and create new genetic drift all the time.
Gene fixation is kinda like all humans have 2 legs.
It's a fixed genetic trait. But humans still are born with 3 legs very rarly. Even though the genetic fixation exists a substitute happens. If that 3rd leg is an improvement it will breed into the gene pool and eventually get "fixed".
Kim knows exactly how to control genetic drift.
By selective breeding.
It takes a whole lot of generations to get truly fixed but after only a few most worms will breed true. Fixed or not. The CURRENT genetic drift they experienced is likely fixed enough for what we need. Quality control will just make it maintain the desired traits.
It's really quite simple. Like breeding dalmatians with spots.
Mojo there is no requirement to notify people of a RS.
I have been in many stocks where the shareholders wake up with the announcement that there has been a RS.
They must be notified it happened but not in advance.
I guess I need to add the caveat that there could be a regulation somewhere but on the OTC it's never enforced
Absolutely.
For every worm that has the spider DNA drift out there is a worm that had the worm silk gene drift out making spider become more dominant.
It's the same reason there are different grades of silk.
Genetic drift in silkworms happens all the time leading to different expression of silk.
Over the thousands of years we have harvested silk the silkworms ability to fly was drifted right out of it.
Without the protocol in place for breeding the spider DNA would drift too.
This is what made Kim's announcement of being able to test the fibers without killing the worm so important.
They can test a hundred cocoons and only let those with the strongest silk survive to breed.
In this manner the genetic drift will drift the worm DNA right out so only the strongest silk(most spider dna) multiply
"Short periods of time"?
If both parents have blue eyes and you are born with brown its genetic drift.
There is no period of time that would be "normal".
Every breeding of any living thing creates genetic drift.
It's a matter of what drifted.
When your blue eyed father did his genetic insertion the blue "didnt take" and drifted away leaving you with brown.
Cull you from the herd and that specific drift wont keep drifting. But it doesnt mean it wont drift again in future generations.
You are speaking of cloning in a way.
Clones have perfect duplication. A "drift" on a clone would be something wrong with the science.
A genetic drift is something right in a GMO. It's a normal evolution of any living thing.
Mojo "drift" can not be cured.
You cant mix red and blue and "cure" it of being purple.
Genetic drift is just simply evolution.
Genetic drift happens in every species.
You have black hair and blue eyes. Both parents have brown eyes but there is blue dna in there somewhere and it drifts into your eyes.
By using a protocol you can isolate and remove those that Express blue eyes. You cant cure them of blue eyes.
Genetic drift is just a term used to describe exactly what is being controlled in the quality control plans.
There is no cure.
It wont ever go away.
It's simply the exact same thing that makes mundane silk have varying quality
No. I said $100 figuring a shirt being around 8-12 ounces.
Or is my math off thinking 300k a ton is 150 a pound?
You tell me.
bolt threads estimated that they could produce their fiber at $100 per kilo...
Yes that's correct. Yet they can produce at an extremely high price.
They are not because extremely overpriced doesnt sell at all.
When they get to a feasible price point they will begin sales production.
200-300k a ton for apparel silk is far too high.
It wont sell at that price.
When just the raw fiber cost of a shirt is 100 bucks the retail price will be close to 1000 bucks for a shirt.
Not feasible IMO
Not impossible to sell.
But no way to build a business
https://lifestylebillionaireclub.com/product/thousand-dollar-shirt/
Great...I hope ds is extremely overpriced and has the profits of a dozen middlemen included...just so long as it sells...
You know why BT isnt already in production?
Because the product is overpriced and wont sell till the price is lowered
Extremely overpriced is a bad thing
So a little fun fact when a mil has left over or damaged raw fibers is used to create yarn for knitting.
The silk you linked is knitting silk.
This is extremely low grade silk.
This silk is made from linings and hatched cocoons and is not high grade silk.
I would guess the raw silk for this was less than $10k a ton.
It is extremely overpriced and has the profits of a dozen middlemen included in the price.
Multiplying an amazon price by 2000 is not how you get retail prices.
That's just ridiculous.
Here is a link for wholesale silk for textiles in varying qualities.
https://m.alibaba.com/product/60688995236/Mulberry-spun-silk-60NM-2-240NM.html?s=p
$20-50 a kilo
20-50k a ton.
Getting 200-300k a ton is excessive for apparel.
Not that it cant be sold but you are looking at basically the BT tie prices
For high tech textiles I could see it maybe. But that will be limited quantity for a while i think
Mojo.... I know you understand the difference between retail and wholesale.
Let's try providing a wholesale price like the type we would be getting.
You know... price per ton?
35-75 is within the area I would expect.
At 100 tons a year that's $13m in sales.
That's feasible.
Next question I have to just wait and see but the whole country only makes 450 tons.
Kim is planning on 20-25% of the country production from a single lab in the first year?
Not impossible but I cant see it as likely.
It's hard to say what a single site can produce
I understand the blending idea. But they are also talking ballistic material. That cant be blended IMO unless they are blending with kevlar which defeats the purpose.
Not saying he cant get it but the shirt of DS will need to be $600
20-185 a kilo vs $200-300.
Personally have only seen $30-50 a kilo at best.
Mind showing me a $185 a kilo silk?
That statement puts our silk a a 500-600% premium to normal silk.
That's much higher than I expected.
Not really sure how polartec will do selling clothing with material costs of $150 a pound.
And for ballistic uses the kevlar competition is less than $20 a pound.
I am not seeing that price being feasible.
JMO
So what are you talking about here?
Jon Rice gave the minimum requirement to report this week. INTENTIONALLY.
I must have missed this. Could you link this statement please
EXCEPT for Kim's 2 super voting shares. So his voting shares will be worth 10x - 40x more than they are today.
Demand is a funny thing. It always exists.
The demand that started the company to make silkworm base spider silk was the demand for a stronger shirt.
That created a demand for spidersilk.
That created the demand for a way to farm spidersilk.
Theye did that decades ago.
The demand changed the day it happened to spidersilk properties.
They got that and we produced a glove. The demand became finding a place to grow silkworms.
Eventually kim will supply silk and the demanded stronger shirts will get sold.
Then the demand will be for even stronger shirts and they go through it again
Every step needs to be ramped up to see if it's possible to move forward.
Ramping up literally means increasing the speed at which they are doing something.
It's a testing and refinement process.
Eventually you ramp up till something breaks. That shows you what needs fixing. You try a repair and ramp up again to stress test the repair and find the next weakness in the system.
You need to learn to speak "kim".
We are a little over a month away from the date kim HOPES to be uplisted.
But if he actually knew what it would take the RS wouldnt be open till next july and it wouldnt have a variable amount.
It could me in a month. But the RS that would be required to do that will take a month or two alone.
If kim isnt in the actual process(not just applying) by next monday there wont be an uplist in november.
How long does it usually take to list on theNASDAQ? It generally takes 4-6 weeks to processa listing application. This time frame is variable and may be shortened considerably, if the application raises no issues and the company responds to staff comments.
The PR was better than we know.
It just isnt as good as imagined.
That PR 6 month ago would have popped the pps. But not today.
I think the market is waiting for income, a contract, or the RS to happen before heavy trading again
The downtrend I am talking about is on the 3 month chart. 50 day sma is in a downtrend and crossed below the 100 day.
The 100 day has begun a downturn.
Other indicators are mostly fine.
But the lowering bottom price and lowering top price average it all I am really talking about.
This isnt so much about the company as those trading it.
But I see trader attitude sliding from "buying on dips" to "see if it goes lower"
Its causing bottoms to be easy to push for and lower volume
The PR with lack of market reaction will encourage the wait and see mentality.
And the PR telling us they moved worms puts the company behind where many thought it was. This will also lead to "wait and see".
The RS also adds.
So I see a lot of down pressure on buyer attitude but because of recent company developments not so much down pressure on sellers.
Someone exiting or shorting or a MM who is bored could easily produce a sudden downward spike that breaks the seller's or vis versa.
Kim could put out the PR that breaks buyers and we spike up.
Bellinger bands are pinching shut. Something is going to spike this one way or the other in the next few days
I agree. The news was good. But I would guess at least 25% of the board thought this was something that happened as far back as january.
Its priced in.
Some question their assumptions of how far along the company is when their beliefs are corrected.
Little dip and back to cruising along.
But kim now needs to give investors something new or the pps will continue the downtrend a little faster.
We will see what hes got over the next few weeks
I agree for the most part. But if you look at that second move it was based on hype of a string of PRs that say we are about to produce.
Polartec spike and settled around .30 which I think is reasonable. Then we get PRs expanding the footprint, granting phase 2, and a shareholders meeting.
People were sure the shareholders meeting was to had out dividends because we sold 5 billion in silk to polartec but it's a secret.
Then RS and Kim's "maybe" made people hesitate and bail.
Pps .10 lower than the stable pps before the RS announcement.
Also reasonable.
But as the billions in sales do not develop and the time gets closer for a RS people are questioning if they should hold or sell and wait.
The pps is fair right now imo.
It will go to .50 and stable when a pr about actual production comes out
There is a big market for the silk that comes off the outside of a cocoon as well as damaged cocoons and the inner lining.
Not sure what is made with it besides blended yarns.
But it's still going to be very strong.
My wife loves to knit and buys wool/silk blends all the time. They are quite expensive.
.50 a share was over bought. Kim had nothing to do with it.
He is not yet ready for a .50 pps with a $1 top. Hes close though.
JMO but I believe the inside BOD member will be vietnamese. Probably either a VC or someone represting a VC who is taking a seat and some shares for a good chunk of cash.
Ken le maybe?
Hopefully not a government representative
This is definitely a GMO but not a hybrid species.
If I remember right they made this worm about 3 years ago. So it's a good indicator of the requirements we would have to meet.
I am not sure if hybrid species have any other special requirements or not.
They also have the "home field advantage"
I think attempting another country should be started but be a secondary priority.
Kim should work on getting all 450 tons of VN silk a year to be our silk and then turn that 450 tons into 1500 tons.
He can think about India when VN production is at 50% of the silk produced being KBLB silk
What do you mean by "traditional"?
IMO Traditional financing is an institution who buys restricted and preferred shares at a market discount with warrant options at a slightly higher price in the future.
We dont have preferred shares to issue yet. If we do get them whatever the OS of those shares add up to is removed from the value of commons.
We could finance with common shares but institutions like the security of preferred stock and I dont see them willing to finance with a billion shares already out.
So Rs.
But why just barely enough to qualify for the nasdaq?
It would be better to enter the nasdaq with a $25 common stock price and only dilute 1-3m total to finance.
PPS would drop to around $18 bucks and just about any institution would be willing
Yup I know india could be in the works. I also know that so far there is no mention in any DD of a hint of spidersilk in india.
At some point I wouldnt doubt india becomes a possibility. We have had people going there for a decade.
But fact is all the GMO approval will need to be gone through in any country and indian politics is worse than VN. There are a hell of a lot more people to convince.
I would think Ethiopia would be much faster than india.
But no matter the name of the country it's still years away.Kim has to maintain his uplist for those years.
Believe me I am no fan of a RS but they are a tool.
If used properly they work well.
A RS right now at the highest available ratio is the best thing Kim can do.
If he could do a 1:100 it would be better but the market would not be very happy about that high so 40 will do
Like I said uses are simple.
Exactly how much is the military going to buy in your scenario?
Because if Kim has contract with polartec to just make shirts the military will have to wait or polartec will.
We have 1 place to do this.
We may have india or anywhere else someday but as yet I have found no mention of another place in anything but a "someday" statement.
If it happened today it would be 2022 before kim got worms there.
So forget the possible explanation to an international production company and deal with what we have.
Currently I would guess and say Kim has no more capacity than 10-15 tons a year if he was running at full steam.
Any more that that and he needs to open a second site.
That will take a year at least.
So in the next year I dont see him selling but 10 tons.
At 10x the current best silk that would be $6 million in sales. But at 10x the price of silk there is no market for polartec or the military IMO. The product gets priced out of the market.
$0.0066 Earning per share with the current structure.
I suck with fundamentals but an EPS of .0066 and $6m gross income doesnt sound like a $4 stock.
Kim needs to RS. To get these other locations he will need to sell shares.
He must have the dilution room to be able to maintain share value and not just share price.
I also feel like he needs to license the country to produce our silk nation wide and just take a royalty.
That would be plenty of cash to expand without borrowing and dilution
The ways it can be used is not really the issue.
You dont get a market cap from what could be done.
Look at it just with math.
What potential sales would be needed to give a company a $4 billion market cap
How many tons of silk are required to get that amount of sales?
Somehow Kim is going to need many millions of dollars invested to maintain that $4 billion.
He will do that with shares but that will cause a pps drop until the sales are realized.
The RS is not just for uplisting. They need a substantial reduction in share structure to allow room for preferred shares, warrants and employees shares.
Kim can not RS uplist and dilute for financing like always. He wont last 3 months on the nasdaq.
Dilution must be added to institutions only.
They want the security of preferred shares
A 1:40 will most likely happen
It would be best to do it as large as possible so he only has to do it once.
It will be worth it in the long term
I dont see how that is falling off a cliff.
Dont you hit bottom when you fall off a cliff?
I see it as a Glider soaring 10x higher than it started. It catches some updrafts and continues gliding.
It wont ever hit the ground as long as there is a updraft(PR) coming. But between them it will always lose altitude.
Well it's up to him. I am not really complaining. I just would have done it different.
Ultimately it's the same outcome. We get rich
Well we approved it but since he has controlling interest he approved it.
According to the filing...
? To approve a reverse stock split of the Company’s issued and outstanding Class A Stock by a ratio of not less than one-for-ten and not more than one-for-forty (the “Reverse Split”) at any time prior to July 23, 2020, with the exact ratios to be set at a whole number within this range, as determined by our board of directors in its sole discretion and approve and adopt the Articles of Amendment to affect same (the “Reverse Split Proposal”)
Approval of this vote does not require the Company to complete a reverse split, this vote simply authorizes the board to issue a reverse if the Board believes it in the best interest of the Company. The Company’s board anticipates that, if exercised, a reverse split would be completed to meet the listing requirements of an uplist to a national securities exchange, or to allow investment from larger institutional investors currently prohibited from investing in the Company. The Company will file another Current Report on Form 8-K to disclose such events, should they occur.