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what if instead of growing mulberries, the farmers could grow rice and use it or sell it and make money doing that...and while they are cultivating the rice, prodigy gets the leaves or stalks for free...so much the better..
Unless, of course, they can create a line that eats waste from other large agricultural industries.
i don't think ms or ds is going to sell for as high a price as once anticipated either...
i would imagine that the new worm food would need to be indigenous to s/e asia
on the other hand, all the filing said was that the company will no longer be paying the mortgage for kim..(im paraphrasing)...it didnt say there would be no more mulberry grown there or that they wouldnt buy the leaves...
yup...there would be no seasonality to it at all...it could all be done in warehouses...24/7...
What’s up with this $42K Lansing, Michigan lease? What’s happening there?
I guess this is part of the cleanup and polish after the “company” was finally put under the microscope.
Was the most expensive mulberry in history.
12 grand a year for less than a ha of mulberry produced per year.
Question is what results has the biological engineer had with her non mulberry diet silkworms in relation to USA production in the future.
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:
There have been (false) statements made that claim that YA II PN (aka "Yorkville") cannot hold more than 4.99% of the outstanding shares. That is incorrect. They can hold as much as they want. They just have to give KBLB a 65 day notification:
And secondly, it would be risky for them because they are only allowed to own up to 4.99% of the shares at a time. They would need to give Kraig Labs a 65 day notice to have more. So in your scenario they would exercise $1mil which would net them 8mil shares, bringing the total outstanding shares to around 860 mil, which means they would only be able to attain 35 mil more shares (utilizing a total of 2.75mil of their debentures. Then they would have to sit on their hands for 65 days and risk the share price going up in the time and having to pay much higher prices for their remaining $2.25 mil worth of debentures. So even if it was legal, it wouldn't be worth the risk.
"But just because the prospectus says they can sell or short shares, it doesn't shield them from Regulation M, Rule 144, or any other securities law that restricts manipulation, especially in the scenario that you were describing."
i think thats exactly what it does...its only manipulation if theres no agreement in place...clearly, kim has come to terms with yorkville and is ok with selling and shorting...
well if its just a loan and no shares have been bought, sold or exchanged hands at all, then yorkville should have no restrictions on it as far as selling or shorting...and Reg M shouldnt even apply...thus the agreement that exists in the prospectus allowing yorkville to buy, sell or short as they see fit...
"Once they have been converted to shares (which I assume they will), they will need to abide by U.S. Securities laws."
so, until then, they dont...interesting...so, like i said, the goal is to drop the pps as much as possible and convert...
i read this and i dont see Reg M preventing yorkville from doing what i suggested as far as selling and shorting...
"Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution."
PRIOR to the distribution....hasn't that already been done and is no longer an issue?...
this is not really a public offering...kblb is not selling shares...they have been given to yorkville to in a convertible debenture agreement
yorkville has pretty much been given carte blanche to do with them what they please...
as for the 4.99% cap on ownership, they will simply utilize their associates to hold shares for them or sell the shares that are above the cap...
i know if i was in their shoes, thats what i would have done...i would strive to obtain enough shares so that i could control the direction and price...
Yes, and everybody hated the Calm Seas deal. They cheered when KBLB cut ties with them.
But all of a sudden everybody loves the Yorkville deal.
Thankyou again, much appreciated.
Now, if you could just tell us where we stand on the uplisting. Lol
i was using .16 as the starting pps...a 20% discount lowers it to .13...$1mil divided by .13 is 8 mil shares...
No problem
Usually I hear it associated with businesses that couldn’t possibly pay the debt in the first place. Kim must be awfully confident that he’s got a product to sell.
So in your scenario they would excercise $1mil which would net them 8mil shares
What happens to the remaining 160 million or so registered shares?
Why 40?
and if kim has no news he wants to put out right away or holds off, whats to stop yorkville from dropping the pps to .05 and then converting all the rest of the debentures into about 80 mil shares which rise exponentially in value once kim starts releasing news again...
Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the Selling Stockholders or any other person.
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.
Thankyou for taking the time to explain that. It was the info I was looking for.
can yorkville force KBLB to convert to shares when ever they want or does KBLB have the entire year to come up with the cash?
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
if metric tons of silk are ready as some here claim "WHY wont Kim release
it"?
So, what does it mean in terms of uplisting?
Then if it was there the whole time, what's the problem?
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.
The claim is that KBLB waited until the very, very last moment (22 May 2020 - since 23 May was a Saturday) to file the patents...
First, if they actually were going to file a patent, then they wouldn't have waited an entire 12 months to do so. They would have done it a while before the provisional patent expired. And if they had, then the patent would have already showed up in the patent database (which it hasn't).
Third, even if they do file another patent at some point in the future, who cares
Well next Thursday is lockdown Thanksgiving so hope its tomorrow.
Patents?
Hi Jetow,
Yes, those are my quotes.
"There is also another catalyst happening in mid November that I am very excited for, and no one on this board has brought up."
"we will have commercial quantities of cocoons by mid November, with reeling happening about a week before thanksgiving"
I’d say this is more of a bread crumb situation at this point, for me...
Are you speaking to something of this nature?
it seems likely that this batch will be the first practical test of the new, "immune-enhancing genetic insert."
Nonsense. The eggs won't even arrive at the Prodigy warehouse by then.
So now there is a rumor that Jon is out for 2 weeks.
Could it be that the rumor is false?
Could it be that he took 2 weeks vacation?
I will be out of the office from Oct 19 - 30 with limited access to email and phone
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
Is this meant to justify comparing Spiber to KBLB?
Is this meant to justify comparing Spiber to KBLB?
Nothing to do with politics. This is Kraig Labs specific. Thats all I'll say.