On Sept. 29, it was announced that the joint efforts of the University of Notre Dame, the University of Wyoming and Kraig Biocraft Laboratories Inc. (OTC:KBLB) to produce silkworms able to spin artificial spider silk, had been crowned with success.
At first KBLB stock prices reacted tentatively, as in the next two days the downward trend continued and the traded volume decreased. However, at the beginning of this week the stock price started to move up and the number of traded shares slowly increased. On Tuesday, KBLB stock rose significantly by 22.92% and finished at $0,12.
The rise has been facilitated by news that the University of Notre Dame has filed a patent application for the new technology and that KBLB, on its part, was seeking registration of seven trademarks of the recombinant silk brands. In addition, on Oct. 04, the stock was featured in a promotional newsletter, which seems to have added even more fuel to the flames.
The company has been going through hard times coping with their financial state. As it is still in its research phase, there has been no revenue whatsoever. And to make the matter worse, their outstanding liabilities are more that hundred times higher than company’s assets.
KBLB was apparently in dire need of a positive outcome of this research. Nonetheless, it is still too early to predict whether the new artificial spider silk technology will bring wealth to the company.
