Kraig Biocraft Laboratories Inc (KBLB)

[sojomy]

“KBLB & Maxim will set the price of the offering, but they have to make it lower than the post-r/s price, or no one will buy it.”

No they don’t. They are getting the stock and a warrant. If you were to offer me a stock and a warrant for the current price of the stock I would take it in a heartbeat. In fact, I just might.

I don't know what you're arguing. It sounds like you think that for every "unit" sold, the buyer is getting 2 shares, but that's not how it works. KBLB is selling $10 million worth of UNITS, not shares. Each unit bought consists of 1 share, plus a PURCHASE WARRANT, which gives the buyer a right to PURCHASE a 2nd share at the same price. But KBLB & Maxim are setting the offering price for each UNIT sold.

Each Unit consists of 1 share of our Class A common stock, no par value (the “Common Stock”) and one warrant (a “Purchase Warrant”) to purchase one share of our Common Stock at an exercise price of $5.25 per share (100% of the price of each Unit sold in this offering based on an assumed initial offering price of $5.25 per Unit, the midpoint of the anticipated price range). The Units have no stand-alone rights and will not be certificated or issued as stand-alone securities. The shares of Common Stock and Purchase Warrants comprising the Units are immediately separable and will be issued separately in this offering. Each Purchase Warrant offered hereby is immediately exercisable on the date of issuance and will expire five years from the date of issuance. The public offering price will be determined by us and Maxim Group LLC (“Maxim”), as representatives of the underwriters, taking into consideration several factors as described in “Underwriting – Determination of Offering Price”, and will not be based upon the price of our Common Stock on the OTCQB Marketplace (the “OTCQB”).

It doesn't get any more clear than the red letters there.

If the post-r/s price is $7, they can still choose to set the unit price at $5.25. The offering price is in no way directly tied to the current- or post-r/s price. And the offering price will be below the post-r/s price or there would be no buyers.