Replies to post #26754 on Kraig Biocraft Laboratories Inc (KBLB)

[silly wabbit]

I have wondered about why a company wouldn't just sell in the open market to raise money - maybe someone with more experience can shed some light on that fact. That might create a lot of uncertainty, at least the agreements with cs spell out (short term at least) limits on how much dilution is coming.

As far as the shares that have been given to Ben, my guess is that those shares weren't all his to keep. Wouldn't it make sense that there is / was an understanding that he would spread those shares around to get in newsletters. Dont all of the disclaimers say that a third party gave them the shares? It could have been him and or cs paying them. Youve done far more dd into the paper trail but my guess is that there are lots of hidden signs and rabbit holes on that trail that if we actually knew the truth, we might all feel a little better.

[TheOcho]

Well, if they file for dilution every couple months, that looks bad. Or they can have a credit line that we take money only when and as we need.

[ZincFinger]

"30 million shares around today's rates, for fun let's use .10 cents per share."

The only reasonable rate to use is the rate at the time the shares were given. Anything else is wildly inaccurate.

As for diluting "directly into the market as you go", to avoid spending much of your time just managing the financing you would need a standing agreement with someone to do it on a routine basis. And whoever such a standing agreement is with would want some influence on your PR to avoid you just releasing a fluff PR just before every stock sale to jack up the price you get. And guess what? You then wind up with an agreement much like the one KBLB has with Calm Seas.

Whether the price may be a bit much for the PR is a realtively minor matter IMHO, considering the benefits in the arrangement plus the fact that KBLB may be getting revenue by early next year (or even this year) and, because of the line of credit type agreement be able to reduce the amount it draws by that much.

Early biotechs have to get money somewhere. Because they are high risks they cannot get conventional loans. IMHO the Calm Seas agreement compares pretty well with what most similar companies get.