Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

The odd wording in Nov. shareholder letter.

“With our focus on the advancement of commercialization activities, we have determined that this is the time to elevate the Company from the OTC Markets Venture Exchange to a national exchange.”

Of course, the letter completely ducked the hard problem in the uplist problem: moving from negative to positive shareholder equity. Nothing new about that. But by saying ‘this is the time,’ it suggests something happening in, say, early December 2019, not ‘still waiting as January 2020 comes to a close.’

I keep flipping between two scenarios. First the positive one. Polartec has offered to invest in KBLB contingent on successful delivery of our first shipment. Their investment will give them an equity stake (hopefully not unreasonable) that allows Prodigy to expand faster than expected and Polartec gets the silk they need.

Scenario 2 is not so positive. KBLB triggers the reverse split and dilutes by selling a huge block of shares on the market. The share price collapses, but the company uses the capital to fund ongoing operations and eventually makes good. Shareholders three years from now see the price rebound to the current price, adjusted for a reverse split. Not much money to be made after that.

Note this is not as bad as the scenario others have advanced, where KBLB is sold for a song and dance with a sweetheart clause for Thompson and perhaps a few others.

And I’m still left wondering what ‘this is the time’ was supposed to mean. If it doesn’t mean something by Tuesday, Thompson should sue his mouth.