Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) Testing Armor That May Save Lives

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) is a biotechnology company that is the leading developer of genetically engineered spider silk based fiber technologies. KBLB has developed, with the assistance of the Universities of Notre Dame and Wyoming, a technology that genetically alters silkworms with spider DNA that spin incredibly strong silk — an order of magnitude stronger than that of traditional silkworms. This has implications for the global textile industry.The stock was just at $.01 a share at the end of May 2016, but when the Company announced that it had a contract with the U.S. Army, the stock shot up from $0.02 and rose to as high as $0.99 on August 4, 2016. Since then the stock has sold off and is presently trading about half that.On July 12, 2016, KBLB announced that it has received a contract with the U.S. Army valued at up to $1 million. The Company will initially receive about a $100,000 from the U.S. government to provide them with ballistic shoot packs made from the Company’s proprietary Dragon Silk material. They initially planned to be produced from their recently acquired production facility in Indiana, but on August 31, 2016, the Company announced that they are also opening a new production and research center in addition to its new domestic facility in Indiana and its prospective operations in Vietnam.The shoot packs will be tested and evaluated for soldier protective applications including ballistic impact. As a result, soldiers could soon be wearing armor made from this genetically engineered spider silk that could be lighter, thinner, more flexible and tougher than steel. This would be the holy grail of textile science.If the option phase is awarded, this will significantly expand the Company’s work with the US Army. KBLB has filed for a patent on the technology and the latest update was that, on June 4, 2016, the patent office forwarded its application to an examiner. The Company’s fibers have potentially broad applications for consumers and the technical textiles market which they are targeting is over a hundred-billion-dollar market annually.The Army contract could turn out to be extremely lucrative, the patent application approval is moving forward and they are in also in discussions with numerous other potential customers, including a rumored multi-billion dollar sports apparel manufacturer. In addition, KBLB signed a joint development agreement with Warwick Mills, a textile company that has designed materials for NASA and the military to manufacture the ARMY shoot packs utilizing the Company’s Dragon Silk fiber. But first, the fibers will be tested using Warwick's laboratory that is certified by the Department of Defense.KBLB presently has a market capitalization of around $40 million. KBLB also needs $7.5 million over the next two years to continue their work with the Universities. In order to get the money, they have signed a deal with Calm Seas Capital, LLC in a put deal where they can sell up to $200,000 worth of shares a month for up to a total of 110 million shares, over the next two years at a price equal to 80% of lowest price of the stock over the next five trading days after a notice.Although these put deals will dilute the shares, at this point, it appears that the Company expects that the testing will be successful and KBLB is doing a lot to accelerate the process. If everything comes to fruition, KBLB has the potential to do a tremendous amount of revenue and should trade higher on any positive news which is expected short-term. We will be updating our subscribers as soon as we know more. For the latest updates on KBLB, sign up below!Disclosure: We have no position in KBLB and have not been compensated for this article.