Kraig Biocraft Laboratories Inc (KBLB)

[jealmc79]

“ How will this news effect the short sellers? “

I am no expert on this, but I would think that Maxim would be shorting this now to try and get a higher reverse split ratio. Right now we could do a 30-1 reverse split and satisfy the Nasdaq requirements. I don’t see any reason for Kim to want a 40-1 split. He should be on the current shareholders side of this now that he is giving up his majority vote. Why would he want to make Maxim investors rich at his cost?

Maxim investors get to buy shares ($4.20-6.20 maybe) and get a warrant to buy more for the same price some time in the future. Sounds to me like enough incentive for them to invest.