2024-01-30 09:53:25 ET
DENVER, Colo., Jan. 30, 2024 ( www.247marketnews.com )- Michigan based Kraig Biocraft Laboratories (OTCQB: KBLB) just reported that it’s ramping up new production trial runs, on the heels of the early production tests that the company performed and announced in December. Kraig Labs expects to provide further updates on its Spring production run in the coming months.
What it is
Spider Silk has long been sought after as the “Holy Grail” of materials. Spider silk is nearly as strong as Kevlar and has the flexibility to be woven into a garment. A short list of Spider Silk applications includes everyday clothing, military protective textiles, cosmetics, engineering textiles, fiber optics, medical textiles, fibers, ligaments, skin grafts and tissue engineering. Kraig’s Dragon Silk could also one day be molded into a biodegradable “Bioplastic”, which would be welcomed and help eliminate many harmful plastic products.
Spider Silk isn’t just one of the toughest materials, it’s also Biodegradable and could replace many products produced with deadly chemicals such as rubber tires, plastic bottles, trash bags, so cartons and containers could all one day be replaced with bioengineered Spider Silk.
How they do it
Kraig Labs (OTCQB: KBLB) uses transgenic silkworms, which have been “charged” with spider DNA to produce a Super Silk, or spider silk. Essentially, the silkworm produces spider silk in the same manner that it naturally creates silk.
Why does it matter?
According to Grand View Research, the global market for plastics alone is estimated to be USD 624.8 Billion annually. Additionally, the Global Rubber Tire market, as of 2023, is valued at USD 314.07 Billion annually and continuing to grow.
One can quickly imagine a world that uses alternative materials, like Spider Silk, which are strong enough to support creating plastic containers and rubber tire replacements that may also be engineered to be biodegradable, helping to create a much safer and eco sustainable planet.
Because Kraig’s Silk Cultivation method uses proven Sericulture techniques and silk industry infrastructure, which has more than 5,000 years history in China. The all-natural process used to produce this Super Fiber will allow Kraig to produce its Dragon Silk to be competitive with every day mundane silk, as Vantage Market Research estimates that the annual Silk Markets could be worth $28 Billion by 2030. Kraig’s advancements in this space could uplift this whole sector, allowing for tougher silk to be used in every day apparel.
Kraig Labs begins what it hopes will be its best and final effort to bring Its Spider Silk line, “Dragon Silk”, into full production
Kraig began its production cycle with the opening of its Vietnamese subsidiary, Prodigy Textiles Co, LTD, in 2018. Kraig Labs selected this location due to the abundance of much-needed mulberry tree leaves, the silkworms’ food stock. The Company then spent the next little over a year preparing the facility, as well as strengthening its technology, business model, and corporate governance needed to begin its first commercial production run.
Kraig then filed an application to uplist to the Nasdaq Capital Market in June of 2020, which began a series of events including potential partners ready to purchase whatever materials the company could produce. However, several setbacks delayed the production plans until the summer of 2023. Plus, Vietnam, which produced nearly 1,000 metric tons of mundane silk in 2021, was slower to normalize after the pandemic, operations at Prodigy Textiles were temporarily hampered.
In anticipation of the uplisting Kraig closed two funding transactions with Yorkville Advisors, totaling more than $8 million, in 2022, to facilitate the Company’s production as a bridge to a larger funding once Kraig Labs landed on a national exchange.
In January 2022, Kraig Labs also created the first Dragon Silk yarns produced entirely in Vietnam, spun from raw recombinant spider silk produced at Prodigy Textiles. Kraig plans to ship Dragon Silk yarn to SpydaSilk Enterprises in Singapore, a joint venture it partially owns, to be woven into fabrics and finished garments.
Prodigy Textiles remains focused on ramping up its recombinant spider silk cocoon output and its supporting vendors will play an essential role in processing that silk into finished goods for a wide range of consumer markets.
Over the coming months, Kraig Labs will continue its efforts to increase production by focusing on increasing silkworm robustness through cross breeding and the introduction of new hybrids.
Kraig Labs began its next production cycle during the summer of 2023, but ran in to quality control problems, as it shifted to large scale production, and took a hiatus to implement new processes and procedures to ensure the consistency of quality throughout the commercial production process necessary to produce significant quantities of Dragon Silk.
A key component of the Company’s quality control improvement efforts centers around bringing in some of the planet’s top sericulture experts who have implemented new standard operating procedures at Kraig Labs domestic R&D facility and Prodigy Textiles, and for their partner production facilities.
The QC efforts and boosted sericulture expertise is already paying dividends as Kraig Labs recently signed a key Memorandum of Understanding with the Vietnam Sericulture Association (VSA) and the Lam Dong Agro-Forestry Research Experiment Center (LAREC) to form a collaboration that’s designed to enhance and expand silk production in Vietnam.
Production run changes everything?
Kraig Labs continues to update the NASDAQ of its progress by keeping its uplist registration statement current, last being filed on November 13, 2023. Kraig’s most recent filing for the period ending September 30 th , 2023, also filed on November 13, shows that the Company still maintains an estimated $2.8 million cash position.
The company’s cash position and quality control improvements should help to drastically increase the likelihood of success with its upcoming commercial production runs. Once a commercial quality product has been delivered to Kraig’s distribution partners and others, who have been patiently waiting for their Spider Silk fibers, the Company should quickly be able to expand into multiple expected sectors with lots of noteworthy brands.
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Cautionary Statement Regarding Forward Looking Information
Statements in this press release about the Company’s future and expectations other than historical facts are “forward-looking statements.” These statements are made on the basis of management’s current views and assumptions. As a result, there can be no assurance that management’s expectations will necessarily come to pass. These forward-looking statements generally can be identified by phrases such as “believes,” “plans,” “expects,” “anticipates,” “foresees,” “estimated,” “hopes,” “if,” “develops,” “researching,” “research,” “pilot,” “potential,” “could” or other words or phrases of similar import. Forward looking statements include descriptions of the Company’s business strategy, outlook, objectives, plans, intentions and goals. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.
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Kraig Biocraft Laboratories (OTCQB: KBLB) Welcomes New Beginnings