Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

Want2retire: “Prepared to up list? Why did they announce the intent to do so 2 years ago and keep us waiting this long?”

Several reasons. First, Thompson wants to get off the OTC for reasons everyone here is familiar with: access to professional investors for capital. Next, he anticipated Vietnam would shortly release his eggs from quarantine and Prodigy would be up and running. Third, he felt the sustained demand for KBLB’s fibers could not be met without a significant infusion of capital at Prodigy. Finally, he felt investors would support a public offering especially if coupled with an uplist to NASDAQ. Perhaps Thompson also wanted the prestige of heading a NASDAQ company rather than a stinky pink one. Not sure how important that might have been in his calculations.

Those considerations triggered his announcement. Unfortunately Thompson made at least one serious miscalculation: He most likely did not foresee the negative impact his reverse split announcement would have on the share price.

If Thompson had announced his financing and uplist plan without any mention of a reverse split, emphasizing organic growth to the proper share price, things would have been different. Investors would have been excited about the process, not terrified by it. With a share price about 50 cents, all KBLB needed for an uplist was a 10-to-1 ratio. The prospect of a 40-to-1 ratio expressed his lack of confidence in the share price. Very bad move.

Maxim’s investors were not anxious to invest on Thompson’s terms, probably a second serious miscalculation. Delays in Vietnam approval, the crop failure in early 2020, and COVID have all kept investors from jumping in. The lack of a reverse split on the super-voting shares and debt to Thompson were also non-starters. Thus the long delay.

Can it still all come together? Sure. But having lost momentum and credibility makes it all the much harder.