Shares of Kraig Biocraft Laboratories, Inc. (OTCMKTS:KBLB) were among the biggest penny stock gainers in Tuesday’s session. The stock jumped 39% to close at $0.34 after the company announced production expansion footprint in Vietnam.
Lansing, Michigan based biotechnology company, Kraig Biocraft Laboratories, is primarily engaged in creating technology that could produce genetically engineered silk and over the past few years, the company has grown by leaps and bounds. However, as everyone knows, a company needs to keep expanding rapidly in such a niche sector and that is what they have done by Kraig Biocraft after they acquired a facility in Vietnam for a lease of 5 years. This is going to raise the company’s ability to produce more of its signature product. On the other hand, Biocraft has also announced that it has entered an arrangement with Polartec to supply this silk for usage in products that are meant for military use.
Big News: Entry in Vietnam
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The recombinant spider skills technology is Kraig Biocraft’s flagship product at this point of time and the company’s decision to expand its production capabilities by acquiring the plant in Vietnam seems to have been a wise decision. The facility in question is located in Quang Nam and is spread of an area of 50,000 square feet.
It will not only allow Biocraft to turbo charge its production of its signature proprietary spider silk product, but also help in keeping costs of production low. The company is currently the leading player in its line of business.
Merely increasing production is of not much use, if the products are not actually put to good use and to that end, Kraig Biocraft has entered into an arrangement with Polartec to jointly produce apparels and fabric that will use the recombinant spider silk that the former produces. The two companies have been engaged in joint efforts from as early as 2016 and at the time the spider silks was primarily used in producing military grade products.
However, the potential of Kraig Biocraft’s product when it comes to usage in traditional apparel is far more appealing. For instance, the fabric has the look of luxury and in addition to that, it is apparently far more breathable. In such a situation, it is not a surprise that this particular agreement between the two companies is being looked upon as a potential game changer. Polartec has been involved in fabric tech, apparel design and fabric science since 1981 and could prove to be the ideal partner for Kraig Biocraft.