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) 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.
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.
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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.