Arcadia Biosciences Inc (NASDAQ:RKDA) Rallies on Financial Release

Arcadia Biosciences Inc (NASDAQ:RKDA)

Shares of Arcadia Biosciences Inc (NASDAQ:RKDA) edged higher by 15.66% after the company reported better than expected second quarter earnings. Investors bought up the shares after the company released financial results that showed revenue growth coupled with declining operating costs and declining net loss.

Arcadia Biosciences Inc (NASDAQ:RKDA)
One month RKDA stock price chart

Stock Performance

Thursday’s rally saw the stock power to highs of $0.60 a share before retreating to the $0.48 mark. The stock faces strong resistance around the $0.50 level.

Arcadia Biosciences Inc (NASDAQ:RKDA) stock is trading 15% below its 50 day moving average as sellers continue to pressure the shares. Arcadia Biosciences Inc. (NASDAQ:RKDA) has underperformed the overall market ever since it started sliding late last year when it was trading at highs of $1.50 a share.

Arcadia Biosciences Inc (NASDAQ:RKDA) is an agricultural biotechnology company. The company develops a portfolio of yield enhancement techniques and traits for addressing multiple crops for supplying global food and feed markets. Partners utilize the firm’s yields to develop higher yield seeds for crops including wheat, rice, soya bean, and corn.

The Davis California Company says it generated revenues of $991,000 in Q2, representing a 37%, increase from Q2 2016. The Company attributes the increase to higher product sales as well as higher contract and grant revenue.

Arcadia Biosciences Inc (NASDAQ:RKDA) second quarter net loss dropped to (-$4) million from (-$4.6) million as of last year. Net loss for the first six months of the year dropped 16% to (-$8.2) million compared to (-$9.7) million as of last year.

“Our positive momentum from the first quarter continued in the second quarter with increased revenue, decreased operating costs and a reduced net loss. Together with our global partners, we continue to advance the key products from our yield trait and food ingredient platforms toward commercialization,” said CEO Raj Ketkar.

The company exited the second quarter with cash and cash equivalent of $44.1 million.

Dow AgroSciences Partnership

Separately, Arcadia Biosciences Inc. (NASDAQ:RKDA) and Dow AgroSciences LLC have entered into a partnership for the development and commercialization of improved wheat quality. The partnership will leverage Arcadia Biosciences non-GM TILLING trait development platform with Dow enabling technology platforms

The collaboration according to Arcadia Biosciences Inc (NASDAQ:RKDA) CEO underscores the company’s commitment to pursuing opportunities in the growing market of improved nutrition traits.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Q2 Financial Results Crush Forterra Inc (NASDAQ:FRTA) Stock

Forterra Inc (NASDAQ:FRTA)

Forterra Inc (NASDAQ:FRTA) stock lost over 57% in today’s trading after the company’s Q2 2017 financial results underperformed expectations. Forterra stock ended yesterday at $8.27, then gapped down to open at $6.08 before hitting an inter-day low of $3.50 which is only a penny below the stock’s closing price of $3.51. The volume was eight times the 30-day, daily average. Forterra’s stock price:

Forterra Inc (NASDAQ:FRTA)
One month stock price chart for FRTA

Forterra Business and Q2 Financials

Forterra Inc (NASDAQ:FRTA) manufactures water and drainage pipe and products in the U.S. and Eastern Canada for water-related infrastructure applications including water distribution, drainage, and stormwater management. Irving, TX-based Forterra Inc (NASDAQ:FRTA) has a product breadth and scaling ability that allow it to service all sizes of infrastructure products without the need for external suppliers.

Q2 2017 net sales increased to $436.7 million, versus $381.7 million for the same quarter of 2016. The increase was heavily driven by acquisitions which contributed $56.1 million. Net sales were negatively impacted by Tropical Storm Cindy, excessive rainfall events around the country and a decline in average sales prices of products sold.  Net income for the quarter was (-$11.2) million, or (-$0.18) per share, compared to net income of $36.7 million, or $0.70 per share, in the prior year quarter.  Adjusted net income1 was (-$1.3) million for Q2 2017 compared to adjusted net income1 of $43.4 million in the prior year quarter.  Adjusted EBITDA1 for the second quarter was $46.5 million, lower than $50 – $60 million guidance provided in Q1, compared to $74.0 million in the prior year quarter.

Forterra Inc (NASDAQ:FRTA) is guiding expectations lower for the remainder of 2017. The company is also reassessing the timetable expectations to achieve a 400 basis point increase in income from operations, EBITDA and adjusted EBITDA as a percentage of sales as compared to full-year 2016.

Forterra Stock Price Analysis

Forterra stock hit $3.50, demolishing the old 52-week low of $6.01. Prior to today’s price action, Forterra stock was down over 83% YTD. At the end of 2016, Forterra stock was trading above $22.00. On a more positive note, the stock’s Relative Strength Index stands well below 20 at 17.25, and observers believe the figure represents an “oversold” condition for shares of Forterra Inc (NASDAQ:FRTA).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Dextera Surgical Inc (NASDAQ:DXTR) Stock Gives Up Gains

Dextera Surgical Inc (NASDAQ:DXTR)

Shares of Dextera Surgical Inc (NASDAQ:DXTR) stock tumbled 12.74% after the company reported a net loss of $3.1 Million for the fourth quarter ended June 30, 2017. News of the net loss comes weeks after the company initiated a temporary shipping hold on its flagship MicroCutter 5/80 Stapler and reload cartridges.

Wednesday’s sell-off plunged Dextera Surgical Inc (NASDAQ:DXTR) stock  close to its 52-week low of $0.17 a share. The company’s stock is currently trading in a tight $0.24 to $0.25 trading range inside a strong downtrend.

Dextera Stock Price Chart:

Dextera Surgical Inc (NASDAQ:DXTR)
One month stock price chart for DXTR

Dextera Q4 Earnings Report

Dextera Surgical Inc (NASDAQ:DXTR) is a medical device company that develops proprietary stapling devices for minimally invasive surgical procedures. MicroCutter 5/80 is the company’s lead product used for thoracic pediatric colorectal and general surgeries. The company also develops anastomotic systems for use by cardiac surgeons.

The medical device company generated sales of $1 million in the fourth quarter compared to $0.7 million for the corresponding period last year. MicroCutter sales in the quarter stood at $359,000 down from $516,000 as of the third quarter. The company attributes the decline to a backorder for the blue reload cartridges and shipping hold at the end of the quarter.

“We have identified and addressed the cause for the premature lock out of the MicroCutter 5/80 surgical staplers announced on July 6th, and after extensive in-house testing of the modification, we resumed shipping to our customers,” said Julian Nikolchev, president, and CEO of Dextera Surgical Inc.

Dextera Surgical Inc (NASDAQ:DXTR) exited the fourth quarter with cash and cash equivalent of $6 million compared to $2.5 million as of the end of the third quarter.

Corporate Highlights

During the quarter, Dextera Surgical Inc (NASDAQ:DXTR) executed a strategic partnership with B Braun for the distribution of the MicroCutter 5/80 Stapler. Under the terms of the agreement, B Braun Surgical will distribute the stapler directly and through indirect sales representatives in Spain.

In a bid to meet growing demand for the MicroCutter 5/80, Dextera Surgical is in the process of optimizing its supply chain as it also works on increasing production capacity to 120 MicroCutter by the end of the year. There are also plans to increase the device’s indications to expand its usage into liver pancreas Kidney and spleen surgery.

Dextera Surgical Inc (NASDAQ:DXTR) has also entered into a co-development project with Intuitive Surgical for the development of a new robotic stapler based on the current MicroCutter technology

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Singlepoint Inc (OTCMKTS:SING) Did What?!

Why Singlepoint Inc (OTCMKTS:SING)

Shares of Singlepoint Inc (OTCMKTS:SING) declined 5.6% to $0.034 in the last session amid heavy volume trading. About 29.6 million shares were traded on the day, which was significantly higher than the average daily volume of 15.5 million.

Singlepoint Inc (OTCMKTS:SING)
Singlepoint one month stock price chart

The plunge in the stock followed an announcement by Singlepoint that it had made a block purchase of digital currency called $Weed from one of its joint venture partners.

Despite the decline, Singlepoint Inc (OTCMKTS:SING) has made tremendous gains this year. At the last session’s close, the stock had risen 211.9% since the beginning of the year and more than 200% over the last 12 months.

Large block purchase of $Weed

Singlepoint Inc (OTCMKTS:SING) said it purchased $Weed from its joint venture partner First Bitcoin Capital (OTCMKTS:BITCF). It described it as a “large block purchase” from a crypto industry leader. But Singlepoint didn’t disclose how much it invested toward the purchase. This may have tempered with investor confidence in the stock as some investors may have worried whether Singlepoint was making a sound investment in the crowded and volatile cryptocurrency market.

Nevertheless, Singlepoint Inc (OTCMKTS:SING) said its purchase of $Weed would go a long way into helping solve payment problems that vendors and consumers encounter in the cannabis industry. Additionally, SinglePoint pointed out that $Weed has a bright future, citing the successful floating of the currency in the “booming Cryptocurrency markets”.

According to Singlepoint Inc (OTCMKTS:SING), $Weed recently completed an ICO (Initial Coin Offering), resulting in a market capitalization of about $60 million for the new digital currency. ICO is an unregulated means by which new cryptocurrency ventures raise funds by selling a fraction of the currency to investors in exchange for regular currencies or other cryptocurrencies – such as Bitcoin.

Consumer first approach

The $Weed has already been listed in three cryptocurrency exchanges and First Bitcoin Capital is planning to list it on more exchanges in the near future. SinglePoint observed that the listing of $Weed in additional exchanges would increase interest in the currency to the levels of its peers such as PotCoin.

SinglePoint said it will work with First Bitcoin Capital to rapidly drive consumer interest in $Weed in what it described as “consumer first approach”. This approach will incorporate several programs, such as special offers, loyalty and the ability to monitor purchasing habits to help build a valuable database for the cannabis industry.

While shares of Singlepoint Inc (OTCMKTS:SING) plunged in the wake of the $Weed investment announcement, shares of its joint venture partner First Bitcoin Capital soared 10.8% to $0.46 in the last session.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SING and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Rennova Health Inc (NASDAQ:RNVA) Receives Market’s Disapproval

Rennova Health Inc (NASDAQ:RNVA)

Rennova Health Inc (NASDAQ:RNVA) has opened Big South Fork Medical Center in Oneida, TN. Rennova Health Inc. provides supportive software solutions and diagnostic solutions to healthcare providers. The stock of the company fell by 13.83% to close the day at $0.310 in yesterday’s trading session.

Rennova Health Inc (NASDAQ:RNVA)
One month daily Rennova stock price chart

“This is an exciting day for Rennova and as I have stated before, demonstrates our commitment to regrow and diversify our revenue stream from its historical focus on diagnostics services to include the provision of needed healthcare services,” said Rennova Health Inc (NASDAQ:RNVA)’s chief executive officer, Seamus Lagan.

Rennova Health Inc (NASDAQ:RNVA) Various medical services

Some of the services that will be offered at the hospital include MRI, nuclear medicine, ultrasound, CT scans and X-rays. Physical and respiratory therapy will also be offered. Some of the facilities that the hospital will offer include swing beds, laboratory, and surgical units. About 80 full-time members of staff and 20 part-time members of staff have been hired. The hospital already had various in-network contracts and this will help to ensure a reliable and predictable payment for services.

In the fiscal year 2015 the hospital generated unaudited annual revenues totaling about $12 million. Its normalized EBITDA was $1.3 million. 2015 was the last complete year that the hospital was operating and hospital revenues are expected to reach the same levels in the next year.

Rennova Health Inc (NASDAQ:RNVA) Future plans

Among the plans the hospital has include getting DVN credentials as well as seeking a Critical Access Hospital classification. This will enable the hospital to enjoy benefits with insurance payers. Once it is opened, a CMS survey will be conducted with the aim of granting the hospital a Medicare number.

Big South Fork Medical Center was previously known as Scott County Hospital and its purchase by Rennova Health Inc (NASDAQ:RNVA) was finalized earlier in the year. This came after negotiations were conducted with a bankruptcy court following Pioneer Health Services’ collapse.

Some of the staff who were employees of Scott County Hospital have been rehired since the facility was purchased by Rennova Health Inc (NASDAQ:RNVA). Western Healthcare, a staffing firm based in Dallas, Texas is staffing Big South Fork Medical Center’s emergency department. A firm based in Knoxville, Stat Care, will be responsible for operating the facility’s hospitalist program.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RNVA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

PDL BioPharma Inc (NASDAQ:PDLI) Earnings Shock Analysts

PDL BioPharma Inc (NASDAQ:PDLI)

PDL BioPharma Inc (NASDAQ:PDLI) stock rocketed higher before settling back and closing around the $2.60 resistance level. Buyers were possibly hoping to jump in front of a positive financial report which was due for release after the market close. Early buyers were rewarded as the company’s financial news release revealed earnings of $0.26 – way above analyst expectations of a figure under $0.10. Volume was heavy, around double the 30-day, daily average.

PDL BioPharma Inc (NASDAQ:PDLI)
One month price chart for PDLI

Incline Village, NV-based PDL BioPharma Inc (NASDAQ:PDLI) reported total Q2 2017 revenue of $143.8 million – a more than five-fold gain from the same quarter last year. Patent royalty increases drove revenues – primarily from Depomed, which accounted for $34.6 million.

PDL BioPharma (NASDAQ: PDLI) acquires and manages a portfolio of companies, products, royalty agreements and debt facilities in the biotech, pharmaceutical and medical device industries. In late 2012, PDL BioPharma (NASDAQ: PDLI) began monetizing their portfolio of assets using licensing to generate royalties. In 2016, PDL began making equity investments in commercial stage companies. The quality of the income generating assets and potential returns on investment drives their investment strategy.

YTD, PDL BioPharma (NASDAQ: PDLI) has gained over 22% but is still over 30% from its 52-week high of $3.77. Over 10% of the stock’s float is held by short positions and the analysts that follow the stock rate it as a “Hold”. Currently, the analysts have a target price for PDLI of $3.25.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ATHX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

FORCE PROTECTION V COM USD0.0001 (OTCMKTS:FPVD) Receives Body Cam Orders

FORCE PROTECTION V COM USD0.0001 (OTCMKTS:FPVD)

FORCE PROTECTION V COM USD0.0001(OTCMKTS:FPVD) stock fell 25% a day after the company announced it had received a purchase order for 160 LE50 Cameras and software from the Department of Homeland Security. The order builds up on an agreement the company signed with the Amsterdam Police for the evaluation of its LE50 HD body cameras.

Wednesday’s sell off pushed the stock to the lower end of its $0.03 – $0.05 trading range and closer to its 52-week lows of $0.01 a share. FORCE PROTECTION V COM USD0.0001 (OTCMKTS:FPVD) develops and sells mini video cameras and accessories to consumers and law enforcement agencies.

FORCE PROTECTION V COM USD0.0001(OTCMKTS:FPVD)
One month daily candlebar chart for FPVD

LE50 HD Body Cams

The devices are designed to capture high definition video and audio, enabling customers to capture content while engaged in other activities. FORCE PROTECTION V COM USD0.0001(OTCMKTS:FPVD)’s products include LE10 Law Enforcement Video Recorders and LE50 HD Body Cams.

The Department of Homeland Security order goes a long way in validating the company’s LE50 cameras designed to comply with law enforcement guidelines. The body camera features 32 GB of internal tamper-proof storage, GPS recording, as well as up to 10 hours of recording time.

Unlike other cameras that use IR lighting, LE5O uses white diode lighting which the company says protects the human eye from too much brightness.

The body camera runs on VeriPic software – a leading supplier of enterprise photo and evidence management software to law enforcement agencies, the military, and medical institutions. The camera also comes with unlimited tech support and a three-year warranty.

Affordability

FORCE PROTECTION V COM USD0.0001 (OTCMKTS:FPVD) is offering the LE50 camera to law enforcement agencies for $18 a month as part of a three-year contract. According to the company, the cost structure acco is the most affordable compared to alternatives. The company has already received more than 100 orders for the Force PRO 1 system.

Implementation of the LE50 Camera by the Amsterdam Police department marks the first step in Force Protection Video Equipment Corp push to make a name for itself on the international scene.

“We are hopeful the successful implementation of the LE50 by the Amsterdam Police is the first step in our international marketing of the Force Protection Body camera systems,” said CEO, Paul Feldman.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FPVD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Pulse Beverage Corp (OTCMKTS:PLSB) Fiesta Mart Warehouse Agreement

Pulse Beverage Corp (OTCMKTS:PLSB)

Shares of Pulse Beverage Corp (OTCMKTS:PLSB) rallied 35% after the company announced the acquisition of Fiesta Mart as a warehouse direct customer. The Houston, Texas grocery chain has over 60 separate store fronts offering a variety of products and services.

Pulse Beverage Corp (OTCMKTS:PLSB)
One month daily candlebar stock chart for PLSB

Fiesta Mart Distribution

Pulse Beverage Corp (OTCMKTS:PLSB) is an emerging beverage company offering a wide variety of drinks. Its brand includes Natural Cabana Lemonade, Coconut Water, and Pulse Heart & Body Health functional beverages. The company produces and sells its products through regional and international distribution system.

Investor reaction to the acquisition could help push the stock even higher given that Fiesta Mart will go a long way in expanding the current distribution network.

Fiesta Mart wills stock and sell Pulse Beverage Corp (OTCMKTS:PLSB)’s Natural Cabana Lemonades and limeades product line as part of the warehouse direct distribution agreement. Higher revenues should be expected given that the products will now be available in more locations in the Houston area.

“The hot weather for most of the year provides us with a great opportunity to expand our brand awareness. We anticipate that this new relationship will get us in front of additional opportunities throughout the Sunbelt in the upcoming months and we look forward to announcing additional distribution wins in the near term,” said Robert Yates Pulse Beverage Corp (OTCMKTS:PLSB) CEO.

National Distribution

Fiesta Mart warehouse distribution agreement come on the heels of Pulse Beverage Corp (OTCMKTS:PLSB) inking an agreement with KeHE Distributors. The distributor has agreed to provide national distribution for the company’s beverage line, focusing on Natural Cabana Coconut Water, Lemonades, and Limeades.

The KeHE distribution agreement will allow Pulse Beverage Corp (OTCMKTS:PLSB) to target customers in Texas as it bids to diversify its sales channel. The distributor has 17 distribution facilities in North America with over 470 trucks, servicing more than 100 retailers.

Consumers will now be able to access the products at Safeway/Tom Thumb and United Grocers in time for the summer beverage selling season. There are also plans to make the products available in California facilities as part of the KeHE distribution agreement.

Pulse Beverage Corp (OTCMKTS:PLSB) also plans to use KeHE as a springboard for targeting more national grocery chains.

“As a result of this new distribution arrangement, we are shipping an incremental 5% additional cases per month in the near term and expect to ship an incremental 15% additional cases per month within 6 months,” said Mr. Yates.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $PLSB and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Hemp Inc (OTCMKTS:HEMP) Stock Explodes After Opening State Of The Art Processing Facility

Hemp Inc (OTCMKTS:HEMP)

Shares of Hemp Inc (OTCMKTS:HEMP) rallied 75.86% after the company announced the opening of a multimillion state of the art cannabis processing facility. The facility is set to supplement the company’s operations in North Carolina, Kentucky, and Colorado where it already has production and processing facilities.

Wednesday’s rally pushed Hemp Inc (OTCMKTS:HEMP) to the upper end of its $0.02-$0.03 trading range waiting to see if the momentum is strong enough to catapult it to 52-week highs of $0.22 a share. The rally came as Investors remained bullish about the company’s growth prospects in the fast growing legal cannabis industry.

Hemp Inc (OTCMKTS:HEMP)
One month daily candlebar chart for HEMP

Growing Extraction Capabilities

Hemp Inc (OTCMKTS:HEMP) has been aggressive in the pursuit of opportunities in the multibillion industry. Recently, the company installed the NuAxon Tech CO2 Supercritical extractor to further enhance its cannabis extraction capabilities. The extractor, reportedly the “gold standard” for the industry, boasts of a large capacity for extracting various therapeutic compounds.

Hemp Inc (OTCMKTS:HEMP) is also in negotiations to form a joint venture with a huge 40,000 square-foot facility capable of producing between 1,000 to 3,000 pounds of CBDs per day.

Hemp Inc (OTCMKTS:HEMP) has also secured the largest industrial hemp mill in the Western Hemisphere. The company has already begun processing and packaging after 3 years of trials. Chief executive officer, Bruce Perlowin has since announced plans to begin marketing efforts for products processed from the milling operations

“[…] However, we have some very huge, potential orders that we have been in discussion with lately including one very large company that wants to purchase the entire productive capacity of our mill’s capabilities including expanding to double or triple its current capacity,” said Mr. Perlowin.

Diversifying Operations

Hemp Inc (OTCMKTS:HEMP) has also planted hundreds of acres of high-quality CBD hemp as it continues to explore ways of diversifying its revenue stream. In North Carolina and Colorado, Hemp Inc. (OTCMKTS:HEMP) has planted 17 acres of one strain of high-CBD clones. Its licensed farming associates have also secured over 150 pounds of a different strain of CBD-rich hemp seeds, which are on course for harvesting in September or October.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HEMP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) Rallies On U.S Army Contract

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB)

Shares of Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) rallied 20.24% after the U.S Army exercised a contract option and awarded the company an additional $900,000 for the development of a spider silk technology. The exercise of the contract option brings the total contract value to $1 million.

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB)
One month daily candlebar chart for KBLB

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) is a biotechnology company specializing in the development and commercialization of spider silks. The company uses protein based fibers to come up with products that are normally used for ballistic protection by military and police. Its products are also used in medical textiles, Geo textiles, and in the sporting industry.

The U.S Army has tasked the company with the responsibility of designing, producing, and delivering silk materials for protecting soldiers. The new contract will last for 12 months and is the second one for Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) from the US Department of Defense.

“The Army’s exercise of its option under our agreement validates that dream. Our team is honored to be working on this noble project and we intend to provide this very important customer with the very best high strength polymers using our recombinant spider silk technology,” said Kim K Thompson Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) CEO.

In May, Kraig Biocraft Laboratories Inc. (OTCMKTS:KBLB) delivered its first samples of Dragon Silk to the U.S. Army. The army is currently evaluating various samples of individual silk filaments as well as finished silk thread.

Vietnam Expansion

Separately, Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) has identified a location in Vietnam where it plans to open a new operational headquarters. The location in Quang Nam province comes with a vast supply of cheap labor that the company plans to leverage as it moves to strengthen its silk production capacity in the country.

The location was selected based on a series of productive and successful meetings with local silk experts. Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) also settled on the location because of its proximity to mulberry fields as well as access to international air and sea ports.

Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) is currently working with local experts to prepare a master plan for the first 50 hectares. Identification of the operational headquarters marks the first step in the company’s push to import its silkworm technology in Vietnam.

“With this location finalized, we are now preparing the final importation documents for submission in order to obtain approvals to begin work with our hybrid silk technology in Vietnam,” said Jon Rice Chief Operating Officer.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $KBLB and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.