Replies to post #233038 on Kraig Biocraft Laboratories Inc (KBLB)

[rayovac812]

Now is the perfect time for KT to make an 100/1 reverse split,

The argument is that either Maxim wants a lower share count on the RS, to sell there services to other companies.... or they don't care so much about that and need to be able to sell the financing shares they will have after the RS is triggered.

If Maxim already has a very high number of shares placed, then they could go either way. If they don't and the shares are a tough sell, then they would have to know there is some news that will drive interest. You and I know this is a no brainer, with the news right now or after the RS.

It is a given that interest needs to spike for a successful move to the NASDAQ. They already know there will be interest either way, so the decision is on KBLB. Still it is in Maxim's best interest to have KBLB not get hit hard on the RS, AND to make as much money as they can placing the shares.

I think KBLB could go either way. I don't feel any pressure for KBLB to get this done this year, but I don't know that Kim feels the same way. We don't have long to wait to see.

Assuming there weren't any snags, the new equipment is in or going in. That means metric ton production sometime in the next month and a half, if there are no labor shortages etc.

I would say it is more a question of KBLB announcing a medical deal with someone, rather than when to RS.....if they have it. That makes for a smooth RS and move to the NASDAQ as they would be ready to sell waste cocoons to make sheets of clear heart valve materials and other products. Waste cocoons becomes a poor choice of wording, but you get it. That will satisfy all the current NASDAQ product requirements, and is independent of a few folks fears of quality consistent fibers.....especially if they are making those "sheets" here in the states. I am loving the fundamentals, as we are in as good a place as we have ever been.

[DimesForShares]

There is never a good time for KBLB to trigger a reverse split.

Your post suggests that a 100-to-1 reverse split would result in a 50% loss in market cap. Not good for any investors, but especially the friends-of-Maxim who are absorbing the dilution. They would be unhappy that their discount shares are in the red.

A reverse split expresses a lack of confidence by Thompson that he has news to boost the share price, a tacit statement that things are not going well. If things are going well, his best play is to release good news and see how far the market can take the share price. If news boosted KBLB up to 50 cents, something between a 10-to-1 or a 20-to-1 reverse split would suffice. Not nearly as damaging to investors.

Thompson continues to undermine shareholder confidence. Changing the maximum shares from unlimited to 99.99 trillion implies massive dilution could be in the cards. A shift to 2 billion says something very different.

Now is a good time to cancel the reverse split, forgive all of the loans he is owed, and seat the BoD. Schedule an annual shareholders conference as well. Those look like power moves expressing confidence, not weakness.