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Friday, 03/27/2020 6:09:25 PM

Friday, March 27, 2020 6:09:25 PM

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We plan to manufacture our proprietary spider silk fibers using traditional silkworm production practices (sericulture). We will provide fertile eggs for proprietary genetically engineered silkworms to farmers and farming cooperatives in silk-producing regions where traditional silk production process has been employed for more than 4,000 years. Farmers under contract with us will tend and feed our silkworms through the five instars, or stages, of the silkworm life cycle, including the final instar when the mature caterpillars produce a cocoon comprised of pure silk. The farmers then harvest the silk and sell it back to us within a contractual relationship that aims both to guarantee farmers a market for their output, thus insulating them from the financial risks of growing our product, and also to protect our valuable intellectual property. In form, this contract production model mirrors that typically used in other agricultural industries such as poultry production in the U.S. By utilizing existing production methodology in traditional silk regions to produce our high performance materials, we will leverage historical knowledge, available labor and existing capital infrastructure for production, spinning, and weaving of our recombinant spider silk materials. This approach should reduce the risk to our manufacturing operations and decreases our need for upfront capital expenditure.

i was told that i was wrong about this happening by some here.
and now you have it in writing by kbl.



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