Kraig Biocraft Laboratories Inc (KBLB)

[sojomy]

Those numbers would be doubled once one include the warrants, since the warrants are exercisable immediately. So 8.92% dilution would become 17.84% dilution at a 40:1 reverse split.

"...each Purchase Warrant providing the right to purchase 1 share of our Common stock. 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."

Oh frick! I was really hoping that was not the case! Unless they have a way to actually get the share price up, and to stay up, they're going to have to do at least a 30:1 r/s to get to $5. So even with the lowest offering amount of $10 million at the highest offering price of $6.25, the dilution is still 11%. This is the least amount of dilution possible with a 30:1 r/s I think. If the r/s price is lower than the offering price, the warrants probably won't be executed, at least until the r/s price gets above the offering price, right?

Wait, so if they actually end up selling $11.5 million ($10 million + 15% for over-allocation), at $4.25 per unit (share + warrant for another share), and the warrants get executed immediately (since the r/s price would most definitely be over $4.25), that means they'd be adding 5.4 million new shares! If they did a 100:1 r/s, there would be 8.5 million shares post-r/s, and adding 5.4 million new shares is 63% dilution. That makes my $50K only worth $18,500?!? Please tell me I'm doing my math wrong?!?