Wednesday, July 20, 2011 11:22:01 PM
It's not just a matter of spending a little less money if they don't use it all. It's a matter of issuing fewer shares so that your shares will be worth more.
And the difference is highly significant it TWO ways (that multiply together, not add):
KBLB only uses the money it needs: that avoids dilution by drawin less money.
KBLB gets a much better price per share for the money it does get (so again less dilution) because the share prices are calculated on the trading price at the time of with drawals (for example, in the last few months many shares would have been based on a trading price of over ten cents (some much higher) instead of the 1 cent that would have been received if it had been an all up front type deal instead of a line of credit.
As for the "valuation" aspect, KBLB would have been valued at less than 10% of what it is today by an upfront type deal last year. And an upfront type deal today would result in a valuation of probably 20 to 10 % of what it could well be next year. But the only real valuation is the trading price which rapidly adjusts to news, etc. shortly after financing deals.
IMHO the Calm Seas deal is vastly better than the standard deals. KBLB needs to issues PRs as news occurs anyway. And even without the Calm Seas agreeement, stock newsletters would be "pumping" KBLB now whether or not they were paid to do it. (Not before, but certainly right now.) Because they need some predictions of big gains to advertise themselves with and KBLB has a very good chance at a huge gain in the very near future (5 to 10 X from here, easy) with the possibility of news of pure spider silk at any time.
But bear in mind that this issue is a relatively minor point and a lot less critical to KBLB's success than the technological progress is.
Recent KBLB News
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/16/2024 09:00:29 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/14/2024 08:30:52 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 06/10/2024 08:30:30 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 06/04/2024 04:15:03 AM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 11/22/2023 09:31:54 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 11/16/2023 09:30:34 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/13/2023 09:43:51 PM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM
Kona Gold Beverage Inc. Reports $1.225 Million in Revenue and $133,000 Net Profit for the Quarter • KGKG • Sep 10, 2024 1:30 PM
Element79 Gold Corp Announces 2024 Clover Work Plans & Nevada Portfolio Updates • ELMGF • Sep 10, 2024 11:00 AM
Nightfood Holdings Inc. Completes Major Step on Uplist Journey by Closing Strategic All-Stock Acquisition of CarryoutSupplies.com • NGTF • Sep 10, 2024 8:15 AM
Element79 Gold Corp. Announces Sale of 100% Interest in Elder Creek, North Mill Creek, and Elephant Projects to 1472886 B.C. Ltd. • ELEM • Sep 9, 2024 9:34 AM