Calm Seas Capital will purchase company's shares over two-year period
By Devika Patel
Knoxville, Tenn., June 29 - Kraig Biocraft Laboratories, Inc. arranged a $1.5 million equity line of credit with Calm Seas Capital, LLC on June 28, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company may draw up to $1.5 million by selling its class A common shares over two years. The tranches will be drawn once a month.
The purchase price per share will be equal to 80% of the lowest closing bid price of the stock during the five consecutive trading days immediately following the put notice date.
The shares will be sold in tranches equal to the lesser of the product of 200% of the average daily volume of the stock for the 10 trading days prior to the put date multiplied by the average of the daily closing prices for the 10 trading days preceding the put date, or $100,000.
The Lansing, Mich., company develops protein-based fibers, using recombinant deoxyribonucleic acid technology for commercial applications in the specialty fiber and technical textile industries.
| Issuer: | Kraig Biocraft Laboratories, Inc.
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| Issue: | Equity line of credit
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| Amount: | $1.5 million
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| Tenor: | Two years
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| Price: | Discount of 20% to the lowest closing bid price of the stock during the five consecutive trading days immediately following the put notice date
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| Warrants: | No
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| Investor: | Calm Seas Capital, LLC
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| Settlement date: | June 28
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| Stock symbol: | Pink Sheets: KBLB
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| Stock price: | $0.11 at close June 28
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| Market capitalization: | $59.25 million
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