Replies to post #191207 on Kraig Biocraft Laboratories Inc (KBLB)

[igotthemojo]

“ Let’s again consider the $213 million Bolt Threads raised for a private illiquid venture and with in my view an inferior technology. ”

Venture capital...they make their money when bolt threads goes public and ipo’s...it doesn’t matter if anyone thinks the product is inferior to whatever...what matters is if they can make money from it...

“ Spider silk is exciting, $11.5 million is peanuts for investment firms looking for the next big thing, I expect they’ll have no problem placing these shares.”

These investors can’t just wait for kblb to go public...kblb already is public...so they must believe that kblb will succeed and grow the company in order to make them money...

Kblb is asking them to put up $11.5 mil into a company that has no mass production, no sales, no revenue, failed twice to mass produce, failed with an army contract, is dead broke and living off of loans from their ceo...in addition, they will be reverse splitting soon and catapulting themselves onto Nasdaq in the midst of all that...

What is going to convince them putting up that kind of money is a reasonable risk worth taking...promises from a stuttering ceo?...

I mean sure....it could happen...especially if the shares are priced cheap enough....but it’s a long shot imo...

“ Market cap will be in the billions within 2 years.”

Let’s just try to make a few pounds of spider silk first before we take a trip down fantasy lane...

[ChiJ]

"Spider silk is exciting, $11.5 million is peanuts for investment firms looking for the next big thing, I expect they’ll have no problem placing these shares."

Important to consider that KBLB is going to be under NDA with companies for development (highly likely to mean they cannot disclose company or specific work). Investors at this level will under NDA to allow for due diligence - IE: KBLB to disclose those agreements. It is standard.

[DimesForShares]

Here’s the problem I have with KBLB’s latest plan.

Investors who have $11 million can log onto a brokerage service and buy shares like everyone else. Nothing to stop them. So what are they getting for buying thru Maxim?

Obviously putting that much cash into the company would drive the share price up. It appears Maxim will negotiate an agreed-upon purchase price, so investors will be protected from that.

However, existing investors recognize the number of shares has increased so their holdings are diluted. Perhaps the share price will drop. Maxim’s investors would want to purchase shares at a discount to protect against such a drop.

Current investors will see this discount price in the final S-1 report and feel discouraged. That may drop the share price further. Where is the bottom on this? A penny per share for Maxim’s investors? Surely that would turn a profit, either in the short run or the long run.

Obviously if Maxim’s investors knew about an important development, a big-name company with a huge contract waiting in the wings, they might buy in. But that would be insider trading.

Having said all of this, I struggle to understand why Maxim would get involved with KBLB in such a debacle. Not a good look for them. Perhaps they know something? Would that be insider trading? Honestly don’t know.

This leaves me with only two possibilities: First, Thompson has news of a sales contract he plans to release before all of this goes down. He can’t have news about production or sales, not enough time. Second, he believes that investors will trust in the promise of KBLB. (The third possibility is that he expects a short-term crash but a long-term recovery. I wonder why Maxim would put their name on this approach.)

Hard to believe I’m stuck between an unlikely contract and a CEO who has very little understanding of how badly a ‘Hail Mary’ plan will hurt investors, but there I am.