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ZincFinger

05/11/11 8:42 PM

#20186 RE: igotthemojo #20182

The cost of a new lab will be high but a close estimate isn't possible without knowing what kind of equipment it needs. It certainly will be in the six figures, IMHO. Biotech equipment is very expensive.

As for the money there are four basic approaches:

1) Make a deal for Monster Silk for upfront money - enough for the lab, personnel and operating expenses until the second part of the deal - royalties, start coming in.

As I detailed before, KBLB should already have at least two generations of gen1 worms (around 60,000) on hand that could be expanded into as many as 6 billion in another 4 months and by then everything else could be in place to start them producing. So royalties could be coming in quite soon. Far sooner than most products because there are plenty of existing silk production facilities that could be used without modifications.

2)Get a partner that would supply the money in return for a percentage of royalties.

3) do a secondary to raise the cash (really workable only if the news of a line of worms producing pure spider silk* raises the stock price enough, which it probably would.. (The production of pure spider silk, although it would be in gen 2, appears to be so close at hand that, IMHO it would come soon enough for this to be feasible.)

4) considering that everything about the production would be an already well established technology except for the worms themselves, once the silk from the gen1 worms have passed full testing and approval, even a conventional loan should be feasible.

The only unconventional thing about the loan would be the collateral which would be either the gen1 line of worms and/or the IP.


Personally I would prefer 1 or 2 and then 3 (as it would lead to dilution) and last of all, 4 (don't like the thought of a bank foreclosing because of something that might have, under other options, been a temporary and surmountable problem.
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TheEternalChampion

05/11/11 8:52 PM

#20187 RE: igotthemojo #20182

Totally a valid question, we've speculated on shares being given to Sigma perhaps or maybe they already negotiated in the shares already exchanged to Sigma about a lab. Definitely a specific question that should be asked at the CC.

I know I found on Sigmas site "Special offer Lab set up %70 off".
Not even joking. I should have posted it when I saw it 2 weeks ago. Can't find it now. They really update their site quickly.
All new graphics on their homepage. Wonder if KLABS would/ could take advantage of that deal. I know it sounds silly. Trying to find link as we speak. Property and lab techs would be the other cost incurred. Even if they negotiated a lab with Sigma they'll have to pay employees somehow. All good questions to add to a CC Q list.

GO KBLB.
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es1

05/11/11 11:29 PM

#20209 RE: igotthemojo #20182

My guess is it will come from loans and the selling of shares. That's what shares are for after all. I am sure that is the answer you were looking for so I will just come out and say it. I would rather have dilution then loans.

The thing about dilution here is Kim could dilute, and unlike most pinks, the money he gets from the shares will raise share holder value.

If this was any of the top 15 Ihub boards I would not argue with you about dilution. Here, dilution doesnt bother me. Kim is not going to dilute unless he absolutely has to.

My guess is if Kim dilutes we will see more then $5 per diluted share added to the market cap in the first year after dilution.

That is to say if he dilutes 20 million the market cap will increase 100 million as a direct result of the dilution.

Dilution for assets is not a problem. Since the assets would not get figured in for a while the PPS drop would only add to the buying.

I also think any dilution would be through intitutional investment. I would think Kim would sell shares to a bank before he sells them on the open market.