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Kraig Biocraft Laboratories provides Spider Silk Production Update
A note from Kim Thompson, CEO of Kraig Biocraft Laboratories
Good morning,
Chances are you just finished reading this morning’s press release, so I wanted to reach out to provide additional clarity and color regarding the release.
At a time when management feels that it is hitting all of its marks, a number of external factors, including overzealous regulation from governments and quasi-governmental actors, have made navigating the process unnecessarily challenging. Many of you have communicated with us regarding the subject matter and, despite having been instructed by our listing consultants and counsel to avoid these issues, it was time to shine a light on the subject.
It is important for our shareholders to understand that our diverse operations, securities compliance, and uplisting application are subject to numerous government and quasi-governmental authorities both here and overseas. These agencies are in a position to impact our business, especially if they feel we have been critical of their activities, and it has been demonstrated to us that complaints and criticism can be met with harsh punishments.
When Kraig Labs filed its application for listing on a national exchange, we addressed each stated listing requirement. We were prepared to raise the capital needed to sustain more than 3 years of operations through our partnership with an investment bank. This capital was also set to exceed the shareholder equity requirement by nearly 100%. As part of that package, I as CEO, was prepared to forgive significant debt which I was owed. Our shareholder count was nearly 11,000 more than necessary. Having met all listing requirements, we, along with our experienced uplisting consultants and investment banking allies, were surprised to receive a series of challenges to our listing that were not at all based on the listing standards. The Company has redressed each of these objections as they were presented. The last, and hopefully final, of these additional challenges is to demonstrate end product sales.
Over the last two quarters, we created an entirely new company and brand in partnership with PL Kings (Spydasilk Enterprise ltd), filed for trademarks, registered a new business entity in Singapore, and developed concept fabrics and products. As we are now ready to surpass this final hurdle, our operations overseas are now being restricted by forced closures and business shutdowns. For example, the spider silk that we produced is more than sufficient to produce the textiles and garments planned for launch and sale by Spydasilk Enterprises. But we are now forced to wait for a textile mill to be permitted to reopen. While our factory is still running, some of our key staff are restricted from traveling to the factory from their residences.
We have been preparing for many of these challenges, putting systems in place to address vulnerabilities, but some of these efforts have been hindered further by restrictions that are also impacting our vendors and preventing them from fulfilling orders for equipment and supplies that we have placed.
Operations at our US facility are humming, thanks to the assistance of our allied investment bankers and consultants. The Company has more working capital than we’ve ever had, and we believe that we’re in the strongest fundamental position to date. However, as an international company, we are at the whim of numerous overlapping authorities, some of whom do not always appear to be acting rationally.
I remain firmly committed to Kraig Labs’ vision and believe that our Prodigy production efforts confirm that broad commercialization of cost-effective and eco-responsible spider silk is on target. We will continue to advance that goal, and others, as we have more finished spider silk on hand than at any point in the history of the Company. While we are very disappointed in the unnecessary delays in our uplist, as a practical matter, that process introduced us to an investment bank that has now capitalized the Company. We are in a strong position to weather this storm. We intend to win this game.
