<< the Company plans to begin weaving several thousand yards of finished fabric incorporating its recombinant spider silk. >>
Yes, it sounds like they are going to make a fabric that is 99.9% "fabric" and 0.01% spider silk. This way they can legally say it is "made from spider silk".
I have been suspecting this very thing for quite a long time. I didn't want to say anything because I know that the CEO and his cronies read the board and I didn't want to give them any (bad) ideas (if they didn't already have them).