ANN ARBOR – Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) announced a new agreement with one of its early research and financing partners, the University of Notre Dame, that converts part of a loan to the company into Kraig Biocraft stock, and the rest into a note payable over the course of two years.
Kraig officials said they have worked in collaboration with Notre Dame for 10 years, developing the company’s recombinant spider silk technologies.
“The Notre Dame IDEA Center is excited by the commercial prospects in front of Kraig Biocraft and is pleased to be able to conclude this most recent agreement, which gives Kraig some additional runway to continue its development of commercial spider silk products,” said Notre Dame’s Richard Cox, director of licensing and business development. (IDEA is an acronym for Innovation, De-risking, and Enterprise Acceleration.)
“We have been working with Notre Dame on this deal for quite some time. Today, we are pleased to report that, having now finalized this agreement, they have nearly tripled their equity position in the company,” said COO Jon Rice. “The deal has strengthened the company’s balance sheet and, in conjunction with the equity financing announced Monday, improves our financial position, as we move towards larger scale production.”
Rice said about $250,000 worth of the debt was converted to equity.
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Kraig has genetically engineered silkworms with spider genes, prompting the silk spun by the silkworms for their cocoons to have superior strength, similar to spiderweb fibers.