Are Shorts Caught in the Web of Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB)

Are Shorts Caught in the Web of Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB)


Truly, one of the most curiously interesting plays we have come across on the OTC is Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB). If you have ever watched a nature documentary that talks about the amazing properties of spider silk, then you can imagine what the value of IP for synthesizing a material with the same properties might be. This company is working to achieve that.

The company just announced that its R&D team has achieved a major breakthrough in the construction of DNA encoding for spider silk proteins. According to the release, “With this new capability the Company believes that it should be able to reduce the customization timeframe, for new spider silk technologies, by several months. The new protocols were developed after Kraig Labs reached out to leading DNA synthesis facilities, which all stated that construction of the desired sequences would be practically impossible, due to the unique structure of spider silk proteins. Refusing to accept that answer, Kraig’s research team then took on the task directly.”

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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According to the company’s latest release, “The newly designed protein constructs are currently being prepared for incorporation into the Company’s spider silk platform technology. Due to their construction, these new designs may have the potential to produce new silk fibers with even greater strength and flexibility than the Company’s current generation of recombinant spider silk.“

Recent action has seen 80% piled on for shareholders of the company during the trailing month. Furthermore, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running above 250% above its longer-run average levels.

“Today’s announcement is another in a long history of Kraig Labs proving the impossible, possible,” said Jon Rice, COO. “From our first transgenic silkworms to the creation of Monster Silk and then Dragon Silk, to obtaining approvals for international expansion, the Company has proven, time and time again, that we have the tenacity to reimagine what is possible. These new constructs and the ability to rapidly adapt them could open new and wider applications in military and high-performance technical textile markets. Today we celebrate yet another example of how the Company is changing the rules in biotech development.”

At this time, carrying a capital value in the market of $44.1M, KBLB has virtually no cash on the books, which is balanced by about $195K in total current liabilities. One should also note that debt has been growing over recent quarters. KBLB is pulling in trailing 12-month revenues of $206K. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 55%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $KBLB stock, as well as other hot stock picks, get 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.

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