Kraig Biocraft Laboratories Inc (KBLB)

[GTman1]

Doesn’t that also incentivize Maxim to sell the stock at a cheaper price which then increases the O/S more?

Maxim doesn't choose the price alone. It will be a price decided on by both them and Kraig Labs. The price will have many factors to consider. Some of which include the prospects of our industry and future earnings.

It's easy for people to see the reasons why Maxim and Kraig Labs would "need" to give a discount for the unit price. We were so used to seeing it with CSC. We expect the underwriting company to have an incentive so when they sell on the open market, a drop in pps is still profitable.

But look at it from the other perspective. If just 1 of the investors in that scenario was sold on the prospects of this company, and they wanted to purchase 6,666,666 million shares on the open market, that would drive the share price up considerably.

So determining the unit price of the share/warrant combo will be determined by a lot of factors. In general, Kim will want to get this share price higher. It will be better for all of us, including him. So I see him dropping big news within the next couple weeks. But for me, I just want him to execute it and get the cash, that's more important to me than 5-10% dilution.