Kraig Biocraft Laboratories Inc (KBLB)

[WebSlinger]

<< A unit consists of a stock and a warrant. >>

Yes, but the S-1A also states:

"The shares of Common Stock and Purchase Warrants comprising the Units are immediately separable and will be issued separately in this offering."

So it seems that an investor can buy shares & warrants apart from each other.

<< So you can have a unit price of $5.25 with the stock price at $4. >>

I don't believe that is correct. It seems that the share price of the stock and the exercise price of the warrants will be the same.

The S-1A states:

"Each Purchase Warrant will have an exercise price per share of $5.25 per share, the midpoint of the price range set forth on the cover page of this prospectus, will be exercisable on the original issuance date, and will expire on the fifth anniversary of the original issuance date."

So they use the same price in the S-1A for the shares as well as the warrants.

<< The warrants ... are included in the unit price. >>

Yes, you get a piece of paper for a warrant. But that piece of paper is worthless unless the warrant is exercised. And IF the warrant is exercised it will have to be paid for (at whatever the current share price is at the time).