Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I’m not sure what you’re trying to say. The rest of the 2024 notes have not been paid off yet, that we know of. IDCC would receive max gain from the Call Spread by closing out the calls and warrants at the strike price of the warrants(which I believe is currently around $109.43). Below that price benefits the call sellers. This could be what is putting a lid on the stock price now.
“.how can you say there has been no products?...our product IS the silk...”
That would be wrong. KBLB is contracting out the silk production part. KBLB’s product would be the eggs. I’ve read where there is a 50% profit margin for farmers that buy the eggs and grow out the worms to produce regular silk. I would imagine that KBLB would have to provide at least that much of a profit margin to any contract farmer to entice the farmer to work with them. I’ve run some numbers on the egg production end and it didn’t look to be that great of a money maker. And yeah, I do realize KBLB will still be in control of where that silk goes, but the point is they already gave up more than 50% in profit margin.
That should say IDCC won’t get $90 for the exercised warrant.
“And I want to know the current status of the warrants that were associated with that bond issue.”
I don’t think you understand how the calls and warrants are being settled. If the warrants are in the money IDCC will I not receive any cash, they will just issue the shares that are equal to the difference between the stock price and strike price of the warrants. For example if:
Warrant Exercise Price=$90
Stock Price when exercised=$100/share
Then IDCC will just issue whoever owns the warrants 1/10 of a share of stock to pay for the difference. IDCC won’t get $100 and then issue 1 share of stock like what you are probably thinking.
Now if IDCC doesn’t close out the warrants at the same time they close out the notes and calls things could get really interesting with the share price. You can go back to June 2016 to see what happened when they didn’t.
At this point IDCC is probably better off waiting until the notes expire in June to close out their position. They’re only paying 2% interest on it now and could be making more than that by investing it. Most of the expense with these notes is front loaded paying for the loan fee and Call Spread.
I would suggest you read my last reply to you. The notes are note going to be converted to shares.
After the shareholders meeting I asked ML if they were looking at directly getting any CHIPS Act money. His reply was basically, “No, the money is meant for the chip manufactures.” I was somewhat taken aback by his seemingly lack of interest in pursuing those funds. Evidently they don’t feel like they have any use for them.
“you post seems to suggest that the kings group has dissolved the contract simply because they could...”
I never suggested any such thing. I said the contract is automatically void because it doesn’t meet the requirements of a contract. Neither side could enforce it on the other because of that. Big difference. Too much for a fry cook to understand so don’t even try.
“I see little point in pissing contests on a message board.”
You’re the one that’s always starting them. I suggest you ban yourself.
“Does attempting to demean others on a free penny stock message board feel good for you?”
You seem to be the expert, why don’t you tell me.
“this isnt a real estate contract where someone sells land and someone puts up money to buy it...that can be an adversarial situation...they are each trying to get the best deal at the disadvantage of the other...”
It’s no different. I’m sure Kim wanted 100% of the profit as did King’s. No reason to have a contract otherwise.
“but have they?...HAS kings moved on?... “
And that’s the $40 million question. I’d rather hear this coming from King’s than trusting anything KBLB says. KBLB’s track record speaks for itself.
Plus, last I checked, KBLB is a publicly traded company making $0 in revenue. I’d think that putting a $40 million contract on the back burner for several years would warrant an 8k. Have you seen one saying so?
I should also note that there was no consideration given for the interest they received if they had invested that $126,200,000 principal for the last 5 years which would make the numbers look a lot better.
Got it all figured out by myself. Now if I knew how to post spreadsheet data to here I could show everybody. Basically, IDCC needs the stock price above $99.92(break even price) to come out ahead dollar wise on the Call Spread transaction. Max cash profit possible is $14,766,407 with stock price on date of conversion at or above $109.43. Max loss is approximately $28,920,000(cost of loan plus interest) if stock is below $81.29.
If they covert the call spread to shares the max number of shares IDCC would receive is 399,218 shares with the stock price closing at $109.43. The number of shares they would receive goes down on either side of that closing price. Effectively, the best they would be doing is coming out paying $72.44/share at that conversion closing stock price once you consider their costs involved in this total transaction. The cost per share would go up considerably on either side of that closing price.
So, even though they can make a max profit of $14,766,407 by taking the cash, the best they can do by converting the shares is $72.44. The bad thing is, they could have bought the shares on June 3, 2019(when Call Spread was initiated)for $64.58.
This all assumes they are paying back the principal in cash as stated in the 10q.
“Can you post a copy of the contract to show where this automatically voided the contract?”
It’s basic contract law. Google ‘basic contract law’ or talk to a lawyer. Obviously nothing I’m going to say will convince you.
“I read it and remembered it.”
Your memory isn’t very good then. The only place that was written is on this message board by somebody making shit up like you are.
“Find it.”
You obviously haven’t.
Slinger: “but it is likely that the contract has been voided for failure to deliver."
Jetow: “Technically, you are making a swag at what you are hoping. Even you aren't stupid enough to think that argument has merit. Come on man!! “
You don’t need to make a swag to see this, just look at the contract and the SEC filings. The $250,000 and the 1 million shares were never delivered, thus voiding the contract.
You either have to be stupid or blind not to see this.
“"it looks to me" is an appropriate qualifier”
It looks to me that you forgot to add that qualifier to your own post.
“How do you know the deal with Kings is over?”
Webslinger pretty much covered everything in his reply.
Another clue would be the fact that KBLB hired Dorton to produce a useable material instead of SpydaSilk doing the research or hiring the expert like you would have expected from the wording in the contract. Yes, the truth is out there if one wishes to open their eyes and see it.
Of course, they could draw up another agreement, but it looks to me that King’s has moved on to greener pastures.
Hope you’re enjoying the holiday’s.
Maybe you should think about changing your name.
“Kim does know what he is doing.
He is building a solid foundation and not a big splash and then a fall.”
What the hell do you call signing a $40 million contract and never collecting a dime then? A belly flop?
“Do you really think it's untested?”
Does Kim really strike you as someone who is capable of thinking that far ahead?
“explain to me what debt IDCC has that does not go away upon conversion of the bonds”
Who said the debt doesn’t go away? If the stock price goes above $110 when converted then the conversion will cause dilution. Check page 29 of the 10q.
“Explain to me how shorting the stock increases the rate of return for the bond holders.”
Pretty much Convertible Bond 101 here. I suggest Googling it. I don’t feel like typing it out for you.
“They just keep digging the hole they will get buried in.”
That short interest could all be from the debt IDCC owes. Selling shares short is how the bond investors can increase their rate of return on that 3.5% interest they’re getting. I’m surprised that the short interest isn’t much higher with the number of shares that are attached to the bonds.
Also doesn’t make sense to me that IDCC would be buying shares now that the stock price is over the conversion price of the bonds. That would just cause more dilution with some of the bonds maturing March 1.
“What part of “silk from this production cycle” makes it unclear”
The definition this company uses for ‘soon’.
“That bundle of silk Kim was holding in the PR should be sold and reported on the next 10-Q.”
Nothing KBLB has ever done indicates they plan on selling raw silk yarn. So, even after Kim figures out how to produce a commercial amount of yarn you’re still going to have to wait for him to figure out how to make a commercially acceptable product with it. So far, we know he has come up with one possibly acceptable material(mostly cotton) to use the silk in. What he’s going to make with that material is still a mystery though. Don’t worry though, this is perfectly acceptable for investors since this is a new product and all.
For all we know the yarn in the picture was what was produced by GSS during their trial run over a year ago. At $300/kilo that’s about how much yarn I would expect to see with the amount they have listed as inventory.