Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) is a penny stock that just caught some serious interest as prices breakout on the upside. The principal catalyst behind the move is unmistakable: KBLB just announced that the U.S. Army awarded the optional phase of its contract with the Company valued at more than $900,000.
According to the release, under this exercised option, KBLB will work to design, produce, and deliver additional recombinant spider silk materials tailored for the protective needs of our Soldiers. With this additional award the total contract is now valued at more than $1.0 million.
Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) bills itself as a company that focuses on developing protein based fibers using recombinant DNA technology for commercial applications in the textile and specialty fiber industries in the United States. This fully reporting biotechnology company is the leading developer of genetically engineered spider silk based fiber technologies.
KBLB has achieved a series of scientific breakthroughs in the area of spider silk technology with implications for the global textile industry.
Core product technology is aimed at military and police applications for ballistic protection; industrial applications, including critical cables and abrasion/impact resistant components; safety equipment; composite materials for the aero-space industry; and for ballistic protection by the defense industry.
Its products are also used in various markets, such as medical textiles, geo textiles, defense and military textiles, safe and protective clothing, filtration textiles, transportation textiles, textiles used in buildings, composites with textile structure, and functional and sportive textiles.
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As noted above, we are seeing shares of the stock pop on the KBLB’s announcement that the US Army is exercising the optional portion of its contract with the company generating significant additional revenue expectations.
“When I founded this Company it was with the dream that one day we would work with the US Army to produce ultra-high strength materials in support of our Warfighters,” said Company CEO and founder, Kim K. Thomson. “The Army’s exercise of its option under our agreement validates that dream. Our team is honored to be working on this noble project and we intend to provide this very important customer with the very best high strength polymers using our recombinant spider silk technology.”
“We are extremely excited to continue our work with the US Army to deliver revolutionary materials to support the Warfighter,” stated Jon Rice, COO. “Under this new phase we will be working closely with our sponsor agency to match the performance of our spider silk to their specific use cases and protective applications. I would like to thank our team for the incredible amount of effort they’ve put in to make the first phase of this project a success and express my gratitude to our sponsor for the trust and confidence they’ve placed in us to deliver the next generation of spider silk solutions. The potential uses of spider silk are nearly limitless, but one of the greatest honors is being able to apply our technology to serving those who dedicate themselves to serving and protecting all of us.”
This additional work on the contract is scheduled to last roughly 12 months and is the Company’s second US Department of Defense award.
We’ve witnessed 18% during the past month in terms of shareholder gains in the listing. Market participants may want to pay attention to this stock. KBLB has evidenced sudden upward volatility on many prior occasions. What’s more, the company has seen interest climb, with an increase in recent trading volume of approaching 160% over the long run average.
Currently trading at a market capitalization of $52.46M, KBLB has a store ($254K) of cash on the books, which compares with virtually no total current liabilities. KBLB is pulling in trailing 12-month revenues of $32K. However, the company is seeing recent declines on the top line on a sequential quarterly basis. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $KBLB stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $KBLB, either long or short, and we have not been compensated for this article.