Replies to post #268821 on Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

My 306 million came from the S1/A form filed on September 1st of this year. The annual report for 2022 lists the shares transferred to Yorkville by date. I could not find a total amount of shares issued and didn’t want to go to the hassle of adding up all of these individual transactions. There are more than 2 pages of them. Clearly Thompson could have reported the total but neglected to do so.

In any case, that was my reason for indicating I was uncertain that my figures were correct and thank WebSlinger for his providing accurate totals and share price.

WebSlinger is correct that the purchase price could differ from the market price by more (or less) than the contractual percentage. The contractual discount is based on something like “the average closing price for the past 5 days.” We all know that the average closing price can be manipulated by a small transaction just before closing time. To illustrate (please do not confuse this with an actual situation — I am only showing how the math works): Suppose the average sale price over a 5 day period is 10 cents/share and almost every transaction was within a penny of that price. However, just before closing on the first four of those 5 days, 100 shares were traded at a price of 5 cents and thus the average closing price was (5+5+5+5+10/5 =) 6 cents. Shares provided to Yorkville were based on that artificially low average closing price and thus were at a considerable discount over the average share price during that previous week.

I am providing this example in detail because the issue has been discussed before and it apparently wasn’t understood.

None of this changes the issue that the shareholders who purchased the issued shares from Yorkville don’t know any more about the company than we do, other than the fact that Yorkville was willing to make the offering.

WebSlinger’s data makes it clear that Yorkville investors are looking at a bunch of red. Most of the wealthy people I know are not particularly happy about losing money especially when the company provides few meaningful updates. Depending on how the broader market does by the end of the year, they might want to dump their shares to offset some of their gains with losses. I can’t imagine they are happy with Yorkville about the situation either. If a couple of them decide to unload 10’s of millions of shares each, the share price might well tank in late December.

It would certainly be nice to get some information from Thompson before that time.

[WebSlinger]

<< The shares were at a 20% discount…in the second deal, the shares were at a 15% discount… >>

It wasn't a plain discount. Those discounts were given against the lowest VWAP over a 10-day period of time, which leads to a much greater discount.

All one has to do is compare how much KBLB sold shares for during a specific dilution vs the share price during that same day.

For example, if we take a look at the very first batch of shares that were diluted on 23 Apr 2021, KBLB diluted 836,574 shares to pay back $100,000.

"On April 23, 2021, the Company issued 836,574 shares of Common Stock in exchange for conversion of $100,000 of principle balance on a convertible debenture and $1,644 of accrued interest."

https://www.sec.gov/ix?doc=/Archives/edgar/data/1413119/000149315223031488/forms-1a.htm

That amounts to $0.11954 per share. But the closing price on that day was $0.16050 per share. In other words, YA II PN got the shares at around a 34% discount. The same thing happens every time they diluted another batch.

<< Isn’t that exactly what yorkville did?… >>

And it was probably what everyone that bought from YA II PN did as well.