Replies to post #114395 on Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

What is the promise of refinancing?

I appreciated Chompiee's thoughtful statement on the State of the State at KBLB. I agree with almost everything he mentioned. One issue I'd like to follow up on is his discussion about new financing:

I think a new financing deal is bigger than what we think. If Calm Seas can be replaced with other funds, we could see the SP rise just on that alone. I believe the contract is up with CS in six months. I wouldn't be shocked if in the next couple of months KBLB has a different method of financing. If that happens, we could be moving up to where the SP should be. Who knows what that would be by the way but it's got to be more than .04.

As I understand it (and could well be limited in my perspective) refinancing could come in three different forms:

1) A loan;
2) Venture capital; or
3) A guarantee of stock purchases (as Calm Seas is doing for us now).

A loan would seem to require collateral. KBLB apparently doesn't have patent protection for their silks. I'm not sure what we could offer beyond that. Thus I see a loan as unlikely.

Venture capital typically (though not universally) want partial ownership in what they are funding. If KBLB gave them a half-billion new shares, that would be a form of dilution for us stock owners. Even worse, the VC's might want preferred stock, making our ordinary stock far less valuable. What else could we offer them?

Option 3 is just a continuation of what we have with Calm Seas. Could we get a better deal?

I hope more experienced investors might help provide examples of other things I've not thought of.