Friday, August 19, 2011 2:40:34 PM
(UPDATED):The CSC agreement required KBLB to have one PR person who CSC approved, which is Ben Hansel. However he is the only PR person for KBLB and clearly KBLB would have needed PR even if it did not have the CSC agreement. Whatever else it did to acquire money would result in the amount of money being directly affected by the share price and for an early startup on the OTCBB, because of the lack of coverage by analysts, absent major news* the only way to get enough investors knowledgeable about the stock is effective PR.
So it is completely wrong to include all the shares paid to Ben Hansel in the price paid for the money received from CSC.
KBLB needed Ben Hansel's PR services for other reasons.
All that has been discussed at length and you well know it (as you have replied to posts including that discussion.)
RE: "Kim, the genius, paid UPFRONT? Knowing the stock price would obviously go up........really? that is the move of a genius? That is one of the dumbest things Kim has ever done(besides failing to account for the embedded derivitive liability)."
The success of the piggyBac transposons was a highly remarkable achievement that many had said was impossible** and took very many tries over years of efforts. All indications are that it was announced as soon as it occurred. Your implication that Kim knew about it at the time he priced the CSC agreement is therefor a pure conjecture that goes directly against known facts all of which have been discussed here repeatedly and at length while you were a poster.
All of the other "points" you have raised have been addressed on numerous occasions here and the general consensus appears to be that they are of little or no significance. I will not therefore waste time and bandwidth readdressing them for the umpteenth time.
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* KBLB has, of course, had very major news: silkworms that produce silk containing a mixture of spider silk protein and worm silk protein with a strength approximately 80% that of spider silk (and of over double that of worm silk (I'll post the calculations to suppport that in a few minutes - just recently got the data to do it with). And it is on the brink of once-in-a-decade news in a few weeks if the current GMs are successful. That was not enough to get adequate coverage to maintain the SP over a long period (but may well be when pure spider silk is announced, IMHO).
** The achievement of the production of silk containing a mixture of spider and worm silk protein with the spider silk protein structurally incorporated into it in a manner that gave the silk strength approaching that of pure spider silk was a very remarkable achievement and the attempt was widely considered to have had very little chance of success (which is why the SP stayed VERY firmly at 1 cent before that).
The genetic modifications required for production of other products in animals/plants/microbes have been vastly easier.
Most of them have been produced in microbes which are dead easy to do GMs in. The methods used only succeed in transforming an exceedingly low percentage of the bacteria/yeast etc but because they reproduce so fast, all you have to get is one success out of many millions. And by including a gene for antibiotic resistance in the GM, you just give the antibiotic to all the microbes and the only ones left living are the genetically modified ones. Piece of cake. we've been doing that for many decades.
Animals and plants (eukaryoted - multicellular organisms) are far more difficult: location of a gene largely determines where, when and at what levels a gene is expressed: where(in which cells and tissues), when (at what stage of development AND under what circumstances - some locations all the time, some locations only very rarely) and at what levels (some in only very tiny amounts too small to be useful) So there are relatively very few locations you can get a GM into that will result in a useful production animal/plant etc. BUT that's still a fairly large number of chances (among a vastly larger number of potential locations.
BUT in KBLB's case they had to get the gene into a location where it would be expressed in a SPECIFIC TISSUE AND ORGAN (the overwhelming majority of genes are NOT expressed globally but only in specific tissues/organs) AND expressed at the right time and stage of development AND in the correct metabolic pathway (each type of tissue has many) to be not merely included in the silk but structurally incorporated into it.
THERE IS NO WAY WHATSOEVER THAT KIM COULD HAVE KNOWN WHEN OR IF THE ATTEMPTS HAD SUCCEEDED UNTIL CONFIRMATION OF THE RESULTS. And all indications are that Kim released the PRs as soon as the results were confirmed.
So your contention that he set a low price when already knowing of the success is just flat wrong. Since all this has been discussed at great length I'm quite surprised if you did not know that.
It should be noted that the zinc fingers used to make the current genetic modifications are vastly more effective and able to make the exact change desired in the exact location desired (and have been proven to work in the silkworm (the study that shows that has been posted here frequently. I'll see if I can get it (and a couple of other things) sticky posted). So that there is almost no doubt that KBLB will be able to accomplish the genetic modifications it is currently in the process of doing. The risk lies in the question of whether those genetic modifications will result in the production of pure spider silk (with no worm silk protein in it). Since with the successful removal of the worm silk protein gene it will be totally impossible for the worms to produce any worm silk protein whatsoever, that is very highly likely to be successful, IMHO.
It should also be noted that under the terms of the SIAL/KBLB deal, KBLB has the rights to EXCLUSIVE use of zinc fingers in the silkworm which effectively prevents anyone else from being able to do what it is doing (that goes for the entire platform worm and not merely pure spider silk).
So it is completely wrong to include all the shares paid to Ben Hansel in the price paid for the money received from CSC.
KBLB needed Ben Hansel's PR services for other reasons.
All that has been discussed at length and you well know it (as you have replied to posts including that discussion.)
RE: "Kim, the genius, paid UPFRONT? Knowing the stock price would obviously go up........really? that is the move of a genius? That is one of the dumbest things Kim has ever done(besides failing to account for the embedded derivitive liability)."
The success of the piggyBac transposons was a highly remarkable achievement that many had said was impossible** and took very many tries over years of efforts. All indications are that it was announced as soon as it occurred. Your implication that Kim knew about it at the time he priced the CSC agreement is therefor a pure conjecture that goes directly against known facts all of which have been discussed here repeatedly and at length while you were a poster.
All of the other "points" you have raised have been addressed on numerous occasions here and the general consensus appears to be that they are of little or no significance. I will not therefore waste time and bandwidth readdressing them for the umpteenth time.
----------------------------------
* KBLB has, of course, had very major news: silkworms that produce silk containing a mixture of spider silk protein and worm silk protein with a strength approximately 80% that of spider silk (and of over double that of worm silk (I'll post the calculations to suppport that in a few minutes - just recently got the data to do it with). And it is on the brink of once-in-a-decade news in a few weeks if the current GMs are successful. That was not enough to get adequate coverage to maintain the SP over a long period (but may well be when pure spider silk is announced, IMHO).
** The achievement of the production of silk containing a mixture of spider and worm silk protein with the spider silk protein structurally incorporated into it in a manner that gave the silk strength approaching that of pure spider silk was a very remarkable achievement and the attempt was widely considered to have had very little chance of success (which is why the SP stayed VERY firmly at 1 cent before that).
The genetic modifications required for production of other products in animals/plants/microbes have been vastly easier.
Most of them have been produced in microbes which are dead easy to do GMs in. The methods used only succeed in transforming an exceedingly low percentage of the bacteria/yeast etc but because they reproduce so fast, all you have to get is one success out of many millions. And by including a gene for antibiotic resistance in the GM, you just give the antibiotic to all the microbes and the only ones left living are the genetically modified ones. Piece of cake. we've been doing that for many decades.
Animals and plants (eukaryoted - multicellular organisms) are far more difficult: location of a gene largely determines where, when and at what levels a gene is expressed: where(in which cells and tissues), when (at what stage of development AND under what circumstances - some locations all the time, some locations only very rarely) and at what levels (some in only very tiny amounts too small to be useful) So there are relatively very few locations you can get a GM into that will result in a useful production animal/plant etc. BUT that's still a fairly large number of chances (among a vastly larger number of potential locations.
BUT in KBLB's case they had to get the gene into a location where it would be expressed in a SPECIFIC TISSUE AND ORGAN (the overwhelming majority of genes are NOT expressed globally but only in specific tissues/organs) AND expressed at the right time and stage of development AND in the correct metabolic pathway (each type of tissue has many) to be not merely included in the silk but structurally incorporated into it.
THERE IS NO WAY WHATSOEVER THAT KIM COULD HAVE KNOWN WHEN OR IF THE ATTEMPTS HAD SUCCEEDED UNTIL CONFIRMATION OF THE RESULTS. And all indications are that Kim released the PRs as soon as the results were confirmed.
So your contention that he set a low price when already knowing of the success is just flat wrong. Since all this has been discussed at great length I'm quite surprised if you did not know that.
It should be noted that the zinc fingers used to make the current genetic modifications are vastly more effective and able to make the exact change desired in the exact location desired (and have been proven to work in the silkworm (the study that shows that has been posted here frequently. I'll see if I can get it (and a couple of other things) sticky posted). So that there is almost no doubt that KBLB will be able to accomplish the genetic modifications it is currently in the process of doing. The risk lies in the question of whether those genetic modifications will result in the production of pure spider silk (with no worm silk protein in it). Since with the successful removal of the worm silk protein gene it will be totally impossible for the worms to produce any worm silk protein whatsoever, that is very highly likely to be successful, IMHO.
It should also be noted that under the terms of the SIAL/KBLB deal, KBLB has the rights to EXCLUSIVE use of zinc fingers in the silkworm which effectively prevents anyone else from being able to do what it is doing (that goes for the entire platform worm and not merely pure spider silk).
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