Kraig Biocraft Laboratories Inc (KBLB)

[igotthemojo]

the finance part of the newsletter...

"For seven years the Company maintained a financial relationship with Calm Seas Capital.In September of 2017, and in light of a review of potential alternatives for financing the anticipated expansion plans, the Company determined that it had outgrown that financial relationship"

for 7 yrs, the calm seas parasites have been feeding regularly off of kblb and its shareholders..the dilution was used for keeping the lights on and funding the company's minimum needs..

kim is anticipating a need for a lot more money, possibly lump sum, for expansion purposes..Vietnam may have its own financing already negotiated..but I'm not so sure about the plan B country..rolling out there will take more money than he wants to obtain from calm seas..especially given their 20% profit requirements..not to mention if you want to be taken seriously, you cant be attached to the likes of calm seas..then theres the army..they will pay and pay generously for what they want..but they are not going to fund your entire company..

bottom line is that if kim wants the ability to supply product to multiple customers, he is going to have to invest heavily in growth and expansion..

i suppose he could choose to grow incrementally..slowly..and (gulp) frugally..but it appears he has checked the various sources of finance and determined he can or will soon be able to access financing on favorable terms..

and since he has already dumped csc, I'm guessing new financing is inevitable..

"The expanded effort with the US Army and the Company’s strategic decision to insource operations have resulted in a reduction in fixed expenses and the flexibility to focus our decisions on the long term potential of the Company."

the army cash and reducing expenses by consolidation and performing functions themselves instead of outsourcing them allows kim the time and flexibility he needs to get the company to the point where they can get the right financing at the right terms..

if Vietnam gets approved, and it includes adequate financing, there should be quite a savings as the costs currently paid by the parent company will be covered by the subsidiary...

that's my read the finance part of the newsletter..