Kraig Biocraft Laboratories poised to Close Out Yorkville Convertible Debenture with Strongest Financial Position in Corporate History

Rhea-AI Summary

Kraig Biocraft Laboratories (KBLB) announced the near completion of an $8 million convertible debenture with Yorkville Advisors, converting over 98% of this debt into equity. The company reports over $4.5 million in liquid assets, with only $150,000 remaining debt to Yorkville. The funds have been invested in expanding production facilities in Vietnam and enhancing R&D capabilities in the U.S. Kraig Labs aims to scale up spider silk production and develop innovative technologies, with a focus on strategic partnerships to meet market demand.

Positive

• Converted over 98% of $8 million debt to equity, strengthening balance sheet.
• Maintains $4.5 million in liquid assets, enhancing financial stability.
• Investments in production facilities and R&D signify growth potential.

Negative

• None.

ANN ARBOR, Mich., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) ("the Company" or "Kraig Labs"), the biotechnology company focused on the development and commercialization of spider silk, announces that it has nearly closed out its $8 million in convertible debenture with Yorkville Advisors. Over the last 23 months, the Company has converted more than 98% of this debt to equity. Kraig Labs remains in one of the strongest financial positions in the Company's history, with more than $4.5 million in liquid assets and a remaining debt balance to Yorkville of only $150,000.

The capital raised through this financing has been deployed in building out the Company's in-house production and laboratory facilities in Vietnam, expanding the capabilities and research focus of our US-based R&D center, and funding the Company's work with third party production partners to scale up spider silk production. Looking forward, the Company expects to continue investing in the scale-up of production capacity, pioneering innovations in spider silk technologies, and bringing products to end markets through direct sales and strategic partnerships.

"Due to the significant progress that we made in securing our new production partnership program, which is designed to allow Kraig Labs to meet anticipated demand without the previous model's intense capital investments, these funds provide us the flexibility that we need to continue to drive growth and strengthen our operations from R&D through finished products," said Company COO, Jon Rice.

"With more than $4.5 million of immediately deployable capital and having nearly eliminated the balance on this debit financing, Kraig Labs has never been in a stronger financial position. We will continue to strategically invest this capital in ramping production through our in-house capacity and partnership with our third-party contractor as well as launch the next generations of hybrid spider silk technologies," Rice concluded.

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About Kraig Biocraft Laboratories, Inc.

Kraig Biocraft Laboratories, Inc. (www.KraigLabs.com), a fully reporting biotechnology company, is a developer of genetically engineered spider silk based fiber technologies.

Cautionary Statement Regarding Forward Looking Information

Statements in this press release about the Company's future and expectations other than historical facts are "forward-looking statements." These statements are made on the basis of management's current views and assumptions. As a result, there can be no assurance that management's expectations will necessarily come to pass. These forward-looking statements generally can be identified by phrases such as "believes," "plans," "expects," "anticipates," "foresees," "estimated," "hopes," "if," "develops," "researching," "research," "pilot," "potential," "could" or other words or phrases of similar import. Forward looking statements include descriptions of the Company's business strategy, outlook, objectives, plans, intentions and goals. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.

Ben Hansel, Hansel Capital, LLC
(720) 288-8495
ir@KraigLabs.com

FAQ

What is the current financial status of Kraig Biocraft Laboratories (KBLB)?

Kraig Biocraft Laboratories has over $4.5 million in liquid assets and only $150,000 remaining debt.

What progress has Kraig Labs made regarding its $8 million debenture?

The company has converted over 98% of its $8 million convertible debenture into equity.

How is Kraig Labs utilizing the funds from the debenture?

The funds are invested in building production facilities in Vietnam and enhancing U.S. R&D capabilities.

What are Kraig Labs' future plans for spider silk production?

The company plans to scale up production capacity and develop innovative spider silk technologies through partnerships.