Responses to frequently asked questions regarding the purpose of shareholder meeting

The following is correspondence between the CEO and two of our shareholders which we believe is informative on the Company’s perspective on ballot initiatives for the upcoming shareholder meeting.


Thank you for your input and support.

I just responded to another shareholder’s inquiry and am including my response to him below, as some of his concerns overlap yours and I think are representative of questions and input I have received from a few others.

On the question of the preferred stock, I think your concerns have some merit.  Super majorities do have a mixed history.  My intention when I received the preferred back in 2013 was to make sure that we always had the votes necessary to execute on our business plan.  The thinking at that time was that if there was an opportunity for a significant acquisition, merger or up-list, time would be of the essence.  The corporate charter was amended at that time to allow a majority to take such action without a shareholder meeting.  The reason was that it takes significant planing, delays and expense to hold a shareholder meeting and a significant opportunity could slip through our hands in that time.

It is a bit ironic then that, now, when we have a possible opportunity for an up-list, we are never the less holding a meeting of shareholders.  

My small team is fully taxed preparing for the meeting while keeping everything else afloat and executing on our plans for Vietnam.  It is fair to say that I am over-taxed as well.  I will keep an open mind about the super majority and seek input from the team and our securities counsel in the coming weeks and months.


Kim Thompson, CEO

Kraig Biocraft Laboratories, Inc.


Thank you for your email.  I am responding to you directly because it looks like you have done your homework on the history of RS.

I do not doubt the Stern data.  Typically when a company does a RS it is because the stock price has been eroding over time and the company can not maintain its exchange listing at the new stock price.  While I have not seen any data, it may also be the case that companies enter into a RS because of covenants on their debt interments or under presser from debt holders. Of course such companies have a tendency to under perform.  They have a history of under-performance.

For Kraig Labs, that is simply not the case.  Our stock has shown significant historical gains (even accounting for the recent pull back) and we are hitting the major milestones we have set for ourselves in terms of setting up production and early stage commercialization.  It is that growth which has given us a possible path to a national exchange.

Historically, we have run this Company on very thin financing.  Now that we need to ramp up production, thin financing will not allow us to ramp up quickly enough to meet our targets or to satisfy the potential customers that we are talking with.

I can not predict the stock price.  I do not know where it is going any more than anyone else.  But I do have strong opinions about what it will take to make the Company a success and what it will take to bring our products to market in a manner that will allow us to beat the competition and capture market share.  My philosophy has always been to focus on the Company’s fundamentals and executing on our business plan.  I do believe that focusing on growing the Company will ultimately benefit our shareholders.

My suggestion would be, that the Stern School data is not as relevant as another set of data.  What happens, statistically, to share price and long term shareholder value when an OTC Company up-lists? 

Our immediate plan to to shoot for the up-list.  There is no guarantee that we will make the up-list.  As I see it we have a relatively small window in which to do this and several moving pieces which need to all move through the window at the same time.  To be frank, my stress levels in engineering and managing this process are very high.  Surprisingly, this is because I think we might just achieve this success and hit the remaining marks in our business plan over the near and medium term.  Some times success itself can be a stresser.  I think the market feels it too.

I know the recent drop in share price is also stressing you and others.  I am personalty affected as well.  But I see opportunity and the possibility of growing this small boat into a bigger and stronger ship.  I chose growth. While I am stressed, I am also excited and, I must confess, elated.

Thank you for your support and your input.  If you chose not to take this ride and see these opportunities through with us I understand.  There are risks, which I do not want to minimize.  It is no my role, as I see it, to convince people to buy the stock or to maintain their investment.  My role it to grow the Company and put in place a strategic vision for market dominance. 

One of the most frustrating aspects of my work is the added burden of being a penny stock and OTC company.  In essence, companies that have made the jump to a national exchange have received at some level a review and participation by investment banks and their client institutions.  Companies which have not gone through that process are always suspect from the perspective of Wall Street and other constituents.  That translates directly to higher costs and closed doors.  If the Company is going to show exponential growth, which is an essential part of our business plan, we need to kick open those doors.  

We are arming ourselves with a battering ram.  I intend to knock on those doors till the hinges come off and the path for our growth is wide open.

Good luck and good fortune to you and for all of us.  


Kim Thompson, CEO

Kraig Biocraft Laboratories, Inc.

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