Kraig Biocraft Laboratories Inc (KBLB)

[sojomy]

Your numbers are way off. You are discounting the price of the shares in the offering by a huge amount and that is why your numbers are off. It’s not the 100:1 split causing this it is the discount that you are figuring. No way is there going to be that big a discount, if any.

"If any?". Whether there is a discount in the offering price isn't a question. If the offering price isn't a discount to the stock price, they won't sell any shares. How much of a discount is unknown, but I do agree, it most likely won't be a $4.25 price if they enact a 100:1 r/s, which would put the stock at $16.50 with today's price. But this r/s is authorized til the end of the year. Without news raising or maintaining the current share price, we could see it back to .13 or even .10. At 0.10, a 50:1 would be the minimum r/s ratio used to get uplisted to NASDAQ, with a higher number being possible. Not saying 100:1 is likely, but they wouldn't have increased it from a max of 40:1 to a max of 100:1 if they didn't want to be able to use it, if necessary.

And since they're trying to time the r/s & the offering at the same time, where the r/s ratio (should) be determined up to 10 days before the offering price is set, anything can happen to the stock price in those 10 days, which would directly affect whether or not the offering price is above or below the post-r/s price. The offering price must be below the post-r/s price or no one would buy it. So if they need to make sure that the post-r/s price is above the offering price, they very well could use a much higher r/s ratio than necessary.

If I offered you a trade where you were to give me all your shares and in return I would give you the same amount of shares plus that many warrants to be able to buy the stock at a slightly higher price some time in the future would you take my offer? There’s your discount!

Sorry, this doesn't make sense to me at all.