The cost of a new lab will be high but a close estimate isn't possible without knowing what kind of equipment it needs. It certainly will be in the six figures, IMHO. Biotech equipment is very expensive.
As for the money there are four basic approaches:
1) Make a deal for Monster Silk for upfront money - enough for the lab, personnel and operating expenses until the second part of the deal - royalties, start coming in.
As I detailed before, KBLB should already have at least two generations of gen1 worms (around 60,000) on hand that could be expanded into as many as 6 billion in another 4 months and by then everything else could be in place to start them producing. So royalties could be coming in quite soon. Far sooner than most products because there are plenty of existing silk production facilities that could be used without modifications.
2)Get a partner that would supply the money in return for a percentage of royalties.
3) do a secondary to raise the cash (really workable only if the news of a line of worms producing pure spider silk* raises the stock price enough, which it probably would.. (The production of pure spider silk, although it would be in gen 2, appears to be so close at hand that, IMHO it would come soon enough for this to be feasible.)
4) considering that everything about the production would be an already well established technology except for the worms themselves, once the silk from the gen1 worms have passed full testing and approval, even a conventional loan should be feasible.
The only unconventional thing about the loan would be the collateral which would be either the gen1 line of worms and/or the IP.
Personally I would prefer 1 or 2 and then 3 (as it would lead to dilution) and last of all, 4 (don't like the thought of a bank foreclosing because of something that might have, under other options, been a temporary and surmountable problem.
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