Kraig Biocraft Laboratories Inc (OTCMKTS: KBLB) is flying higher on the confirmation its spider silk fabrics are ready for the high-performance apparel market. An 89% spike in share price could as well signal strengthening investor and market sentiments as the company embarks on a commercialization drive of its game-changing fabric.
KBLB Price Analysis
The surge adds to an excellent start to the year that has seen the stock register impressive gains on high turnover in traded shares in the market. The company teaming up with industry leader Polartec is another development that continues to prop the stock’s sentiments among investors.
Kraig Biocraft Laboratories has also continued to elicit interest from institutional investors the University of Notre Dame having echoed its confidence on the commercial prospects of the spider silk fiber.
The raising of additional capital has also left the company in a stable financial position ideal for expanding production of the new recombinant spider silk. Early this year the company completed two major shipments to Vietnam, further affirming its prospects on the supply of spider silk-based products.
The stock resorting to trading in a steep uptrend does not come as a surprise given the love Kraig Biocraft Laboratories continues to enjoy in the market. A spike to the $0.12 handle leaves the stock flirting with 6-year highs, after a long period of underperformance.
Price action indicates that pullbacks from current highs will find strong support at the $0.08 level, above which the stock remains bullish. Conversely, a sell-off followed by a close below the critical $0.08 technical evil could result in the stock plummeting back to the $0.05 level.
Given the milestones, the company has achieved on the development of the spider silk fabrics the stock looks set to continue edging higher on improved market sentiments.
About Kraig Biocraft Laboratories
Kraig Biocraft Laboratories is engaged in the development of protein-based fibers commonly used in the technical textile and specialty fiber industries. Its products are commonly used in the military as well as police applications for ballistic protection. The products also find strong application in medical textiles geotextiles and protective clothing.
Why is Kraig Biocraft Laboratories Skyrocketing?
Shares of Kraig Biocraft Laboratories are skyrocketing on investors reacting to the company’s plan to bring to market the first fabric made from spider silk. The new fabric promises to be a game changer in the global market of high-performance textiles and apparel, seen as one of the reasons why investors have continued to push the stock up the charts.
Spider silk fibers stand out on the fact that it is scalable and cost-effective in material science. Kraig Biocraft Laboratories possesses exclusive right for its production using spider silk gene sequences in silkworms.
The company has since inked a strategic partnership with Polartec to enhance the development of the new fabric.
“Teaming with an industry leader such as Polartec is a real endorsement of our proprietary approach to unlocking the potential of commercially produced spider silk. Kraig believes that spider silk, with its superior mechanical characteristics, has the potential to surpass the current generation of high-performance fibers,” states Kim Thompson, Kraig Laboratories founder, and CEO.
Buoyed by the developments made on the development of the game changer spider silk fabric, University of Notre Dame has decided to convert a portion of the money owed into a note, payable over two years.
The conversion allows Kraig to continue developing and focus on commercialization of the revolutionary material. In addition, the company has secured a $1 million private financing to fund the expansion of spider silk production in Vietnam
“Securing this bridge financing was a key piece to funding the Company’s commercial expansion strategy and puts us in a strong position as we expand spider silk production we shift operational focus to production,” stated COO Jon Rice.
After an excellent start to the year, Kraig Biocraft has taken flight following market acceptance of its revolutionary spider silk fabric. As the company moves to commercialize the revolutionary material in the apparel market, it remains well positioned to generate significant value given the enormous potential.
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Disclosure: We have no position in KBLB and have not been compensated for this article.