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Yorkville has used up $600K of their $5mil debentures. It has netted them a little less than 5mil shares. At this rate, Yorkville will net 41.3mil shares. A far cry from the 207mil shares that some here are trying to use to spook shareholders. It is right in line with the amount of shares I predicted. Furthermore, this doesn't factor in an increase in share price for any news we might receive in the near future. So it could still be much less than 41mil.
Okay, so you said:
No problem
I will add that IF Yorkville decides to convert these immediately; they will get 40 million shares. So those whom were trying to hype the “207 MILLION IN TOXIC DILUTION” will never get their wish.
Kraig Labs would have gotten close to $5 million for the price of 40 million shares at a 20% discount, in addition to someone having the right to buy some more of our shares at $.25 per share. That is actually really good.
And, IMO, even if Kraig Labs sold $10 million in silk next quarter and could pay the loan back early and in full, I personally wouldn’t want them to. Cash Flow for a company like Kraig Labs, at this juncture, is much more important than 40 mil in shares.
No problem Ray.
Not too many people know how convertible debentures work, so there is great effort to make them look worse than what they are.
I'd like to clear up any confusion regarding this convertible loan with Yorkville. There seems to be a ton of misinformation being spread whether it's misguided ignorance, or willful deceptiveness.
This is how the loan is structured:
• What Kraig labs gets: $5million cash (-8% management fee)
o This is split up in 4 tranches. (they rolled the Dec Loan into this one)
• The first one was in December for $1mil
• The second was March 26th for $500K
• The third was on April 6th for $500k
• The fourth was April 22nd for $3mil
• What Yorkville gets: $5mil worth of debentures ($1mil from December loan and $4mil from new loan). Yorkville also gets 2 tranches of warrants. The first one from the December loan (also called the December Debenture) for 3.125mil warrants at a strike price of $.16 and the second tranche of 8mil at a strike price of $.26 per share. So Yorkville has a couple options.
o OPTION #1: Yorkville simply sits on theses debentures. They have a 10% interest rate that accrues. After a year is up, Kraig labs can pay them back with the 10% interest and the deal is done. Yorkville will still have their ~11mil warrants that they can exercise if the price is above $.25 per share. They are obviously betting that they will or else their warrants were useless.
o OPTION #2: Yorkville converts this entire $5mil into shares. If they choose this option, KBLB will no longer owe Yorkville anything besides the prorated interest for however long Yorkville held the debentures for, and KBLB will keep the $5mil(-8% transaction fee). So what does this mean in terms of how many shares Yorkville receives?
• Yorkville will receive a 20% discount on shares depending on the share price from the previous 10 day trading period. This is similar to the deal that Calm Seas got back in the day.
• So Example #1: (Current situation)If the share price stayed around $.16 for 10 days, and Yorkville decided they wanted to convert their debentures, they would get their shares at roughly 12.8 cents instead of 16 cents. This would net them a little more than 39mil shares. THAT IS ALL THEY WOULD GET.
• Example #2: the share price rises after good news to $.50 per share and stays around there for 10 days. Yorkville decides to convert their debentures. They’ll get $5mil worth of shares at $.40 per share. That would net them 12.5mil shares. THAT IS ALL THEY WOULD GET.
• Example #3: The share price falls on terrible news of a Vietnam shut down. The price goes down to $.05 per share and stays their for about 10 days. Yorkville decides to convert their $5mil worth of debentures at $.04 per share. That would net them 125mil shares. THAT IS ALL THEY WOULD GET.
o OPTION #3: Yorkville does a combo of option 1 & 2 and converts some debentures and receives some loan payback after a year.
As you can see, Yorkville already gets about 11mil shares in warrants for the deal at strike prices of $.16 and $.25 per share. So if they want those shares, they’ll have to pay KBLB an additional $2.5 million to receive them.
Also, in regards to the 207 million “authorized” shares. Yorkville has every right to make sure there is enough authorized shares available in case things go south. They are, after all, dealing with a company on the OTC where companies that succeed are few and far between. This doesn’t mean they are being “issued”, so they are not part of the “outstanding” shares. It is meant as assurance to Yorkville if, for some reason, the share price tanks. It is also very standard for convertible debentures to request an authorized amount that is many multiples of what the current deal is likely to net. This is very simple to understand and I’m surprised how many fall for the misinformation.
Last note about the claims of KBLB rising debt; Guess what? the cash that they borrowed hits their books immediately. So it doesn’t raise their debt until they’ve spent it. So actually, this debt is currently hardly net negative (a couple hundred $K from transaction fee). Furthermore, if the debt is converted, then that debt goes away and our balance sheet goes to net positive from this loan. For instance, if Yorkshire converted all this debt to 40mil shares tomorrow (which is what it would be at the current share price), KBLB balance sheet would show about $4.5mil cash so if Kim still forgave his loan (like he said) we would be getting close to NASDAQ uplisting requirements (not to mention $2.5mil more cash from Yorkville warrants).
Thank you for listening to my TED talk
How about we "look no further" then the link you posted.
Here it is from your post...
CLICK AT YOUR LEISURE
Now scroll down near the bottom where it says: Applications Claiming Priority
It's right there.
Just a reminder, this is from your post which proves there was a continuation.
Hi Jetow,
Yes, those are my quotes.
Let me clear up any confusion anyone has in regards to how and why Spiber is pivoting.
The point of all these "spider silk" companies (Kraig Labs, Bolt, Spiber, Amsilk) is to produce a natural fiber with properties similar to spider silk. Spider silk isn't valueable just because it is a protein that comes from a spider. It is valueable because it has incredible properties that cannot be replicated by manmade materials.
Turning any protein into a fiber is not difficult at all. People have even made t-shirts from milk fiber. The catch is, these fibers are useless when it comes to their technical specs. But they are a novelty, I guess.
Spiber began by harnessing yeast and engineering the yeast to produce some spider silk analog proteins. Normally, spider silk is a very long chain of repeating amino acids, which give the spider silk its incredible properties. Spibers analogue fibers were much shorter, so they would not have the desirable properties of spider silk.
Furthermore, when Yeast or e. coli excrete proteins, they excrete thousands of different proteins. So when Spiber wants to make spider silk fibers, they first have to purify the broth in the bioreactor to extract the extremely small trace amounts of spider silk protein. This is very expensive, and one of the reason why human insulin and monoclonal antibodies are so expensive to make.
So what does Spiber do? they pivot away from spider silk protein all together. This way they can sell their "Brewed Protein" which is essentially them just harvesting all of the thousands of different types of proteins that yeast and bacteria produce. Sure, you can make a fiber out of this, but why? to say it's vegan? sure that's fine. But the fiber will no longer have any desirable properties that aren't already fulfilled by other natural and commercially available fibers. No one here should be fooled; Spiber and Bolt Threads are no longer in the "spider silk fiber" business.
Time and again I have offered up evidence that the bioprocess of protein production is cost prohibitive. Unless there is some monumental breakthrough in this process, Bolt Threads and any other fermented protein producer will NEVER make cost effective fibers.
It costs about $60 per gram to make human insulin (the same process Bolt Threads uses to make their silk proteins). Note that this is the production cost, not even the selling price. This, coincidentally, is roughly the same price of gold at this moment. Bolt Threads, Spiber, Amsilk, and any other protein fermentation company would be better off trying to sell T-shirts made out of pure gold fiber than using the protein fermentation process.
The costs of these proteins in the pharmaceutical industry are cost effective because a gram of protein can go along way in therapeutics. It is absolutely NOT cost effective in textiles.
I provided this link before but this is literally a textbook on the bioprocess that Bolt Threads and others use to produce their proteins. Give it a good read if you want to learn the "truth" 4 once.
https://www.researchgate.net/publication/306253307_BioProcess_Design_and_Economics_2nd_Edition
Nothing to do with politics. This is Kraig Labs specific. Thats all I'll say.