Kraig Biocraft Laboratories Inc (KBLB)

[GTman1]

Do the shares go out on the open market or are they sold behind the scenes to investors lined up?

No, they are not sold on the open market. Don't listen to everything you read on this board.

The job of Maxim Group LLC, as our underwriters, is to solicit investment and sell those shares to investors at the unit offering price. That is what they are paid to do so KBLB gets the full value of the offering. They are not unleashing shares onto the open market like some might have you think.

Maxim Group LLC is a midsize investment bank that services a lot of small/mid-size biotechs on the national exchanges. Some of their clients are smaller companies I've invested in before. But they also have some clients that are behemoths like BlackRock and PIMCO, who they have co-managed placements for in the past. Their job is to get these shares into the hands of investors, and they have a broad client base to make that happen.

Is this the way for the company to inform potential investors or is it required to inform current investors?

This preliminary prospectus is standard. Normally Maxim would do a roadshow and drum up investor interests by marketing the company to their contacts. This process is sometimes done prior to the preliminary prospectus, which means the full prospectus with pricing can be filed the next day. I've also seen it take a few weeks for underwriters to gauge the interests and set the unit price. Kim might be planning on dropping big news so we get a better unit price.

For me personally, I don't care if they sell these shares for 10 cents. The capital is sorely needed and it's the most important aspect of Kraig Labs future success. Kim waiting around for the absolute best deal would just effect our opportunity cost, especially in this economic environment.