Replies to post #199617 on Kraig Biocraft Laboratories Inc (KBLB)

[jealmc79]

I see what your saying, but I’m thinking the warrants are the discount. If KBLB does a RS to get the share price to $4 and the big investors are able to get a share plus a 5 year warrant for $4 they could turn right around and sell the share for $4 and either keep the free warrant and hope the price share price goes above $5.25 sometime in the next 5 years or they can sell it to someone else for whatever a five year option is worth($1.50?).

I think the share price is more likely to rise after a 27:1 RS to $4 than it is after a 40:1 to $6 or higher split. Also, the current share price is lower now than it was when the first S-1 was filed mainly due to this ‘quiet period’ which has caused a lot of shareholder confusion and uncertainty. That should factor into the discount also. But it doesn’t matter what you or I think, KT is the one doing the negotiating. Hopefully he is on our side.

[SilkRoad]

I don’t see how it is possible to put a fair estimate on the pps or any warrants right now without knowing if production will resume in Vietnam soon or not. Whoever is coming in to invest through these offerings is betting on big things and production though for sure. Otherwise they could park their money elsewhere in other investments. So no matter what the price, I see this as a positive. But I still want better production results from KBLB. IMHO

[WebSlinger]

<< It looks like Thompson is structuring this offering to include a discount via the warrant. >>

I don't believe that is correct.

This is from the amended S-1A:

"The Purchase Warrants may not have any value.

Each Purchase Warrant will have an exercise price equal to the per share public offering of our Units and will expire on the fifth anniversary of the date they first become exercisable. In the event our Common Stock price does not exceed the exercise price of the Purchase Warrants during the period when the warrants are exercisable, the Purchase Warrants may not have any value."

So it looks like the exercise price of the warrants will be equal to the share price of the offering.

[rayovac812]

The point here is that wealthy investors want to be almost certain of a short term profit. They are unhappy if the share price tanks and they have to wait a few months to recoup their investment.

Some want to show good performance over time. Some are happy to see the share price decline before they jump in. Some talk it down or have respectable mouthpieces talk it down, all the while having plans to buy in.

There is no perfect example. What sells is when the world figures out top end or good yearly sales numbers and value. Investors are willing to wait many years, as is the case for most biotechs. They wait those many years because of the expected returns. If someone isn't sold on KBLB's long term success, then this is as good a place as any, to sell us on why that won't happen.

KBLB is one of the most ideal investments on the planet....if the world doesn't blow up with more things like pandemics. We have our plans and God has His. Other than this, no one has given me a believable scenario for failure. Scale is the only metric yet unachieved, as if that carcass has to be beat'n any more.