Kraig Biocraft Laboratories Inc. (NASDAQ:KBLB) dropped 15% as the company offered updates regarding its spider silk production initiate and the impact the tightening CPOVID-19 pandemic restrictions in Vietnam are having on its operations.
First, the company announced that its Vietnamese subsidiary, Prodigy Textiles, has produced sufficient silk to crate various fabric blends. The fabric designs were done in collaboration with PL Kings to be utilized in products under the Spydasilk brand. The fabrics are likely to be available by the end of Q2, but the company now has to source mills beyond Vietnam.
The COVID-19 restrictions in Vietnam and across the globe are limiting finished fabrics delivery to PL Kings. Kraig Biocraft will now coordinate the export of complete recombinant silk from spiders. In addition, PL Kings is coordinating the effort of identifying alternative mills in the ASEAN region that can produce the fabrics. In anticipation of the restrictions and delays, the company’s US R&D headquarters increased support for Prodigy’s production activities with an increase to egg supplementation capacity to maintain a stable egg supply. So in the coming weeks, KBLB is a stock to watch.
Market Reaction:
On Tuesday, KBLB stock slumped 14.70% at $0.0828 with more than 4.87 million shares, compared to its average volume of 1.22 million shares. The stock has moved within a range of $0.0801 – 0.0925 after opening the trade at $0.0900. Over the past 52-week, the stock has been trading within a range of $0.0801 – 0.2400.
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