So, Ben responded again. This is going to be a long one folks so bear with me. First, you will see what I sent back to him today, then his response to my last email....apparently..I "pissed" him "off". You can skip to the bottom if you want to see his response and not my email. Cheers!
Ben,
I appreciate that you clarified the merger/split thing. Also, I am not trying to piss you off nor am I trying to slam Kraig Labs. The facts are the facts. You guys have been in business now for over 10 years and have produced, for all intents-and-purposes…nothing. If you have produced and sold silk…then say it! Say it in no uncertain terms. As for the business side of this, let me lay this out for you this way:
Here is what is required for listing on the NASDAQ.
To be listed on the NASDAQ exchange and reporting system, these are the following requirements:
1) Shareholders Equity of at least $2,000,000 (.As of 2020 KBLB has a SH Equity of negative (-$6.57M)...not quite enough...)
2) At least 100,000 shares of public float (More than meets this requirement with a whopping 647.81M shares of public float.)
3) A minimum of 300+ shareholders (Probably meets this requirement. HOWEVER, if this is only institutional Shareholders then KBLB has only 2.)
4) Total assets of $4,000,000 (As of DEC 2020..KBLB has $1,277,000 in total assets...not quite enough)
5) At least two market makers (Anyone know who the market maker(s) for KBLB are? Are they individuals or an institution?)
6) $3 minimum bid price of the company stock (KBLB is at .13 cents...not quite enough) Let me give you another company as an example here. Titan Medical Inc. out of Toronto is also an OTC stock. They have a GREAT product just like Kraig Labs. They too decided to do an RS and uplist to the NASDAQ. The stock consolidation drove the price into the $6-7 range as you would expect. Then, they filed another prospectus and sold more stock…dilution…and the stock dropped back below a dollar. They were warned a couple of times by the NASDAQ that they were going to stop trade on that platform. Titan had to take on a ton of debt to avoid sinking the share price any further and they still do not have their product to market.A year later and the stock is still at about $1.75. The bottom line is that an RS and uplisting is NOT a guarantee of success and has a huge number of problems with it. Sell 4 tons of silk and that problem goes away…heck…even 2 tons would get the ball rolling!
7) Public float market value of $1,000,000 (If this is calculated by multiplying the PPS by the float, then you have about $84M in market value of the public float.)
So, of the basic requirements to be listed on the NASDAQ...how many does KBLB meet? By my count...3...possibly 4 if you have at least two market makers but who knows who they are or if there are any at all?
Now how many can Kim affect? Almost all of them. He can't determine how many market makers there are, at least not that I know of anyway. But everything to do with shareholder equity, public float, and total assets, he can directly affect. The question is....why hasn't he done that? The numbers from the balance sheet and the current PPS don't lie. All Kim would have to do to get this train on the track is to produce product...for real produce it...not a sample sent to himself from Vietnam. If he were to deliver even a good portion of the 8 metric tons already promised in PRs from over a year ago, most of these requirements would take care of themselves...organically...which, even for a company...is healthier and more attractive than doing another raise or holding the RS over our heads. Oh, all of the numbers above were taken from your balance sheet on Yahoo Finance and Marketwatch if you want to fact check me.
As for being pissed off…that was not my intent…and I appreciate your candor and responses.
Take Care,
(My Name)
On May 26, 2021, at 9:34 AM, ir kraiglabs.com <ir@kraiglabs.com> wrote:
Hi (My Name),
Your email pissed me off to the point that I must not have been thinking straight, but I meant to state reverse split, not reverse merger.
Best regards,
Ben Hansel
720.288.8495
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