Kraig Biocraft Laboratories Inc (KBLB)

[Suvorov]

I disagree with your analysis.

If an investor buys a KBLB preferred share issuance for whatever amount of money the common shareholders don't get diluted one whit.

If the $5.8 MM is enough to get KBLB profitable the preferred shareholders get their coupon (interest) amount paid and their principal repaid ($5.8 MM)after the 5 year term or whatever such that KBLB's common shareholders GET NO DILUTION whatsoever.

Of course, there is always the risk that if the profits don't come and since the preferred shares have first right to the KBLB assets would injure certainly economically injure common shareholder's interest. Hence, the preferred share issuance or bond issuance should be large enough to cover all contingencies. Kim wants to do this offering only once or the price of a second financing will rise.

However, I am of the opinion that KBLB , Kim will deploy the non dilution monies effectively giving common shareholders a much greater economic return than if KBLB financed though a common share offering.

In my opinion.