Kraig Biocraft Laboratories Inc (KBLB)

[es1]

I am no expert in this so take this with a grain of salt.
A very high A/S is sometimes used as a saftey net for a company who could be threatened by a hostile takeover. I do not know if it would apply here since Kim holds so many shares.

If Kim ever decided to sell some shares and held less then half the OS they could have controling intrest in the company. To avoid this, the company can issue 5 billion prefered shares and the controling intrest belongs to the prefered holder who ever that is(Kim).

In the future I could see Kim issuing shares as part of a JV deal or merger. Since he owns (I think) 300 mil of the 500mil OS, if he was to give out more then 100 million he would lose controling intrest but would still be the majority stock holder.

That is when someone could potentially try to do a takeover.

With the type of tech we have here, there is a good chance that someone out there has eyes on how they could take it.

In the end the AS is just that. What is allowd. As long as the common shares in the OS dont increase we are going to continue our uptrend we have been in for a couple months.