Kraig Biocraft Laboratories (OTCQB:KBLB), a producer of bioengineered silk, has set terms for a $10M initial public offering which includes uplisting its shares to a national exchange.
KBLB said in a filing that it plans to offer 1.9M units at the assumed priced of $5.25 per unit, which is at the midpoint of its price range of $4.25 to $6.25 per unit. Each unit will consist of one share plus one warrant to buy one share.
Underwriters will be granted a 45-day option to buy up to 286K additional shares and/or warrants. Maxim Group is serving as sole bookrunner. The company hopes to list its shares on Nasdaq or another national exchange under the symbol KBLB.
KBLB is focused on producing high strength fibers for commercial applications using recombinant DNA technology. The company is currently using bioengineered silkworms to produce recombinant spider silk that can be used for apparel, textiles, medical implants, cosmetics and other purposes.
The industrial biotech company is operating in the red. For 2021, KBLB reported a net loss of $8M and no revenue. KBLB said it plans to use proceeds from the deal in part to expand its production operations in Vietnam.
KBLB shares are currently traded OTC under the symbol KBLB. As of Thursday evening, the company had a market capitalization of around $67M.