Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) shares jumped 57.32% to $0.0664 on Friday then fell 15.65% to $0.0560 in after-hours trading. The company has a market cap of $57.17 million at 734.62 million shares outstanding. Share prices have been trading in a 52-week range of $0.01 to $0.07.
Kraig Biocraft Laboratories is a biotechnology company focused on the development and commercialization of spider silks. Its lead product is a genetically engineered spider silk known as Monster Silk, which is a composite fiber, which is spun by its line of transgenic silkworms. The company uses genetic engineering technologies to develop fibers for use in target markets, including the textile, specialty fiber and technical textile industries. Specialty fibers are engineered for specific uses that require strength, flexibility, heat resistance and/or chemical resistance.
The company shared on July 26 its acquisition of a new facility in Indiana. Kraig Biocraft Laboratories has already begun interior construction and expects to have the facility ready for operations by August 10, helping the company increase its US production by nearly twenty-fold.
This expanded domestic capacity should allow us to be more responsive to customers in both capacity and variety of spider silk materials,” said Kraig Biocraft Laboratories COO Jon Rice. “This growth of our production capacity will allow us to expand our relationships with both industry and governmental collaborators. We are looking forward to the inauguration of this new production facility within the next two weeks.”
Prior to this, the company received a contract valued at up to $1 million from the US Department of Defense for a batch of ballistic shoot packs made from the company’s proprietary Dragon Silk material to be used for testing in body armor use. While this might not have a material impact on the company’s long-term financial standing just yet, securing a larger contract from the agency could imply stable revenues for the company and sustained stock gains.
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