Kraig Biocraft Laboratories Inc (KBLB)

[GTman1]

"But just because the prospectus says they can sell or short shares, it doesn't shield them from Regulation M, Rule 144, or any other securities law that restricts manipulation, especially in the scenario that you were describing."

i think thats exactly what it does...its only manipulation if theres no agreement in place...clearly, kim has come to terms with yorkville and is ok with selling and shorting...

That's an incorrect assumption. SEC regulations and securities laws aren't really meant to protect companies, they are meant to protect common shareholders. That's why the SEC was created. To defend investors against malpractice from insiders. If Kim were to write into the prospectus "Hey Yorkville, you're also allowed to naked short these and you don't have to pay taxes", it doesn't mean yorkville can do it.

well if its just a loan and no shares have been bought, sold or exchanged hands at all, then yorkville should have no restrictions on it as far as selling or shorting...and Reg M shouldnt even apply...thus the agreement that exists in the prospectus allowing yorkville to buy, sell or short as they see fit...

If it's still a loan, then Yorkville wouldn't have any shares to "buy, sell, or short" so I don't get your point. Plus we are in the midst of the agreement and if Yorkville knows any material information, they cannot short (which I don't know why they would anyways since they are going to have enough issues selling what they have)

"Once they have been converted to shares (which I assume they will), they will need to abide by U.S. Securities laws."

so, until then, they dont...interesting...so, like i said, the goal is to drop the pps as much as possible and convert...

Just so we're clear, KBLB and Yorkville are in the middle of their agreement. There are still restrictions for a company that owns debentures. The only thing they don't have right now are shares. It's not like the agreement doesn't exhist just because they haven't converted to shares yet.

In the spirit of all this agreement, lets agree to shelve this conversation. It's a Friday and I really want to start my weekend