Kraig Biocraft Laboratories Inc (KBLB)

[GTman1]

I really don’t believe $24 million is needed to accomplish full scale production in Vietnam.

I tend to agree somewhat. On the surface, $24 million seems like a bit more cash than we need. However, it will be $11.5 initially, with $12.5 million in optional warrants to potentially be exercised at least 6 months down the road.

But the $11.5 million will be great for our near term expansion.

Truth posted an article (post 190401) about the silkworm industry in a specific region in China. In that article we gain some insight on the capital expenditures to build out a full blown sericulture plant. The factory in the article costs about $12.7 million to build, and processes about 2,000 tonnes of silk a year.

We can start to roughly extrapolate the capital expenditures that Prodigy will need in order to get to those types of levels.

We also need to take into consideration that the Chinese standard of living has increased dramatically in the last couple decades (on average). The average income in China is about 3 times more than in Vietnam. So it's reasonable to assume that a dollar in Vietnam will go much further than in China. I think it's also reasonable that Kraig Labs (Prodigy) could use this $11.5 million to make a similarly sized production facility, and still have lots of capital left over.

During the ASM last year, Jon or Kim mentioned that when the new financing deal is complete, there will be money earmarked for marketing purposes. In my opinion, this part of the business has been severely neglected. I think that the initial $11.5 million, plus the add on from the warrants ($12.5 million) will give us all we ever need for production, marketing, and R&D until we are generating revenues.

So, long story short, I agree that $24 million may be a little much, but I would welcome the security it gives this company to execute it's business plan. We will now get to see how this company is run when it's fully funded.