ANN ARBOR – Officials at Kraig Biocraft Laboratories Inc. (OTC: KBLB) announced that the company had closed a $1 million round of private financing to fund expansion of its recombinant spider silk production in Vietnam, support research, improve its balance sheet, and support other corporate initiatives.
Under the stock purchase agreement, the company issued shares of its Class A common stock at a price of 6.758 cents a share, as well as warrants to purchase additional shares of its Class A common stock at exercise prices of 6 and 8 cents a share.
Additional details about the financing will be available soon at https://www.kraiglabs.com/sec-filings/.
Officials said a core focus for this funding will be to support the growth of operations at the company’s new production plant in Quang Nam Province, Vietnam. With this funding in place, the company plans to ramp up silk production at this larger plant.
Kraig has produced genetically engineered silkworms by implanting several genes from spiders in them, resulting in silkworms that spin cocoons with some of the strength properties of spiderweb fibers. Applications include a variety of textiles, including protecting clothing for soldiers.
“Securing this bridge financing was a key piece to funding the company’s commercial expansion strategy and puts us in a strong position as we shift operational focus to production,” Kraig COO Jon Rice said in a press release. “This capital is necessary to support commercial expansion, which is essential in establishing market channel collaboration for consumer products.”