32% to its price. Along with the price jump, the traded volume of KBLB exceeded 7 million shares and the massive traded has begun.The most reasonable explanation on the volume spike appears to be the latest news by Kraig Biocraft Laboratories. Yesterday, the company reported that it has successfully negotiated a license agreement with Sigma-Aldrich and the two companies were going to develop genetically modified silkworms for the production of spider silk.
Inspired by the optimistic news, traders started buying KBLB shares intensively and the stock got the climb immediately. Though, it turns out that Kraig Labs did not rely only on good news to pump up its stock price. Again yesterday, KBLB was promoted by a couple of promotional websites to ensure the gain. The result of the campaign was positive, however, no compensation for it was mentioned.
Kraig Biocraft Laboratories, Inc. develops protein-based fibers for commercial applications in both the specialty fiber and technical textile industries. The company has recently filed a notification of late filing for its annual results, though judging by its 10-Q report its financial condition looks quite disappointing.
By end-September, 2010 the company’s liabilities were far beyond its total assets and the stockholders’ equity has decreased. Besides, the net loss of KBLB has exceeded $1 million, as well as the stockholders’ deficit.
As a development-stage company, KBLB has not generated any revenues, while its losses have been increasing progressively. Due to its limited operating history, the management stated they had no sufficient cash for the next twelve months. This means that until the company raises additional capital for its operations, its continuation will be considered as questionable.
