Kraig Biocraft Laboratories Inc (KBLB)

[first mike]

Whether or not KBLB is generating any revenues at the time, buying a production company, IF it happens, will be on the basis of an exchange of stock.

Possible Scenario:
XYZ is a silk producer that is slowly dying because of the low market price of silk, running at a small loss every year even though they have revenue in the millions.

Kim T. approaches them with the idea of farming and reeling Monster Silk(TM) for KBLB at a small profit per year.
XYZ is very interested, but they do not have the needed up front money.

Kim T. offers for KBLB to Buy XYZ for XX million shares of KBLB stock, They agree!

KBLB acquires all of the stock or all of the private ownership of XYZ in exchange for XX million KBLB shares (new issue).

XYZ starts making Monster Silk(TM) and the much higher price that they get for MS doubles their revenue from NNmillions to 2(nn) millions, they become very profitable. (still under the existing management, workers, facilities, no changes needed for MS except perhaps some to the reeling machinery.)
The old XYZ owner/managers now are major stockholders in KBLB.
They are very happy.

KBLB has diluted by XX million shares, but its book value has quadrupled, so PPS goes UP dramatically.
Kim T. and we minor KBLB shareholders are Very Happy!

This sort of deal happens every day in the real world of mergers and acquisitions.

The whole is greater than the sum of its parts!

Mike L.