Kraig Biocraft Laboratories Inc (KBLB)

[GTman1]

because there is ($6m) SE but the offering only clears $10m as $1.5m is ‘juice’ for the investment bank.

$1.5 million is not the juice. It is reserved for Maxim to purchase stock at this offering. They will still have to pay Kraig Labs the $1.5 million for their shares.

Look at it this way. Let's say Maxim has 10 investors that want to invest $1 million each. Maxim will sell them $1 million worth of shares (depending on the agreed upon unit price). Let's say the Unit Price is 15 cents. So each of the 10 investors would get 6,666,666 shares. Plus, they will each get 6,666,666 warrants where, if in 6 months from now the stock is higher, they have the right to purchase that many shares for 15 cents. Maxim has the same opportunity to purchase up to $1.5 million worth of shares and $1.5 million worth or warrants. Maxim also gets the opportunity to purchase additional warrants up to 8% of how many units they sell (that's the extra ~$1 million max), but for a price thats 110% of the unit price. So it behoves Maxim to sell as many as possible, because it gives them the opportunity to buy more warrants, which will be valuable but only if the stock price increases.

Notice that if the stock price doesn't increase from the unit price then those warrants are worthless. So these investors will have an interest is seeing the share price be much higher 6 months from now.

Hope this helps. If not for you, maybe someone else.