Kraig Biocraft Laboratories, the developer of spider silk-based fibres, has secured US$1m in private financing to fund the expansion of its recombinant spider silk production in Vietnam and support its advanced research operations.
While the funds will also improve the firm’s balance sheet and to support other corporate initiatives, the core focus will be to support the growth of operations at the company’s new production facility in Quang Nam Province, Vietnam.
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Kraig Biocraft announced plans in April last year to set up a new subsidiary in Vietnam for the purpose of establishing large commercial-scale spider silk production. Three months later it hailed the opening of Prodigy Textiles’ new facility, followed by plans to accelerate the project schedule in late July.
Now, with the new funding in place, the company plans to ramp up its silk production at its factory in Quang Nam Province.
“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,” said COO Jon Rice. “This capital is necessary to support commercial expansion, which is essential in establishing market channel collaborations for consumer products.”
Under the terms of the stock purchase agreement, the company issued shares of its class A common stock at a price of $0.07 per share and warrants to purchase additional shares of its class A common stock at exercise prices of $0.06 and $0.08.
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