Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

New facility: Not in US, not in Vietnam ...

Once again, KBLB leaves us reading tea leaves. Yet I believe there are clear indicators that this new facility is not domestic nor located in Vietnam. Consider:

To accelerate the process of establishing the new facility, the Company has signed a contract with a team of biotechnology regulation experts with a proven track record of successfully introducing new biotechnologies.

Clearly these biotechnology regulation experts are not going to be growing silkworms. Instead, their job is to help gain regulatory approval from another government to farm genetically altered silkworms. KBLB is already in production here in the US, so they don't need permission to grow modified silkworms in America. The PR piece makes it clear this new facility is also distinct from Vietnam and in an area where there is expertise in farming silkworms:

to open a new production and research center in addition to its new domestic facility and its prospective operations in Vietnam.

and

"... we have found the ideal location and partners for our planned third production facility,” said COO Jon Rice. “The regional expertise in silk production and the appetite for ground breaking technology makes this a perfect complement to our plans in Vietnam and our new facility in Indiana.”

Might be India, China, or somewhere else in the region where they have regional expertise in silk production.

Having said all of this, I didn't find the press release terribly exciting. KBLB is going to be spending some serious money for its production facilities. Unlike Banarama, I believe that if KBLB had another contract, they would have announced it by now. They will be able to get a contract once they have proven their ability to produce the quantities needed for the contract. I personally can't see another way for them to obtain money to fund all of these sites in any way other than by industrial strength dilution.

After their sales ramp up, the dilution should go away. But we are probably at least 1.5 years away from that point, IMHO.