Replies to post #138038 on Kraig Biocraft Laboratories Inc (KBLB)

[es1]

Both are technically dilution.

Look at it this way...
We shareholders own 100% of a $58m company.
If they issue $5.8m in preferred

We own 90% of that 58m

Preferred own 10%

Now we get 5.8 million in cash but that can be burnt in salary and fees in no time, or it can buy a facility.

Either way it's dilution.
It's what asset value we get for the $5.8m that matters.
We buy a facility and the value of the company climbs $10m we all make out great.

Dilution is not a bad thing is my point.
People try to use it as a curse.
I know Kim could ask me and many others to finance the company and we would do it.
But the dilution would be more obvious.

IMO Kim diluting is a great thing.
The guy has not diluted much over the years. We have made a gain on every share sold.
If he wants to sell a few million I will be in line for a private placement

[Suvorov]

I agree, considering the low cost of the stock, selling bonds or preferred would be , I think, the more prudent move.