Dear Shareholders,
There have been a number of request for a supplement to the last issue of spider sense regarding our progress towards obtaining an enterprise registration certificate, or equivalent in Vietnam. The Enterprise Registration Certificate (ERC) is effectively our business license to conduct our operations in Vietnam.
It’s an important subject, as Vietnam is one of the countries with the existing infrastructure to support mass production of our spider silk. Existing silkworm infrastructure should translate into superior quality and great cost reductions, compared to building out from scratch at shareholder expense. For these reasons we view our discussions with officials in silk producing countries, including those in Vietnam, as being critical for our commercialization efforts.
That being said, negotiations with high level government offices are often challenging, with multiple competing interests vying for influence. These challenges exist in any bureaucracy. Over the last twelve months, the Company, and its consultants in Vietnam, held a series of successful meetings with top officials within central government and provincial offices. Each of these meetings moved our project forward. This forward progress was not without contention from some individuals within the bureaucracy. That, as you can appreciate, is how governmental systems work. These meetings have brought us closer to our goal.
We have assembled the right team of people in Vietnam working within the provinces and at the central government level to see this process to successfully completion. In parallel with working to secure our ERC, or equivalent authorization, we are working with provincial officials and our consultants in Vietnam to identify local staff and facilities.
Recent questions surrounding news stories, translated from the original Vietnamese sources, highlight the challenges of working across languages and with large government agencies. Different offices within the bureaucracy have different priorities and this leads to the contentious nature of some of these meetings.
Those article have described some of the more touchy elements of those meetings, while excluding key portions and conclusions. The Company has made significant progress over the last six months. We believe that we are on track for international production and that the process in Vietnam in particular is coming to ahead.
While operations in a major silk producing country remain a key element of the Company’s growth plan, it is not our only approach. In 2017, we made two major moves to expand our domestic operations. In the first quarter, we leased 15 acres of land in Texas and planted our first 2,000 mulberry trees. In the fourth quarter, we opened a new production and research headquarters in Michigan, more than tripling our floor plan and capacity. Combined, these two domestic facilities represent a significant increase in our domestic capacity.
Our approach to developing and producing spider silk leverages nature’s silk factory, the silkworm. This approach is driven by; molecular biology, process simplicity, cost benefits, and competitive advantage. The infrastructure, tools, and skills, to produce high quality silk, already exist. We are certain that our cost effective approach, combined with leveraging existing infrastructure, are key to seeing this market grow into the thriving disruptive technology it has the potential to become.
We do believe that we have the greatest and most enthusiastic group of shareholders that any company could ask for and we thank all of you for your continued support and even for your occasional criticism. You are appreciated.
Thank you.
Kim Thompson Jon Rice
CEO COO
About Kraig Biocraft Laboratories, Inc.
Kraig Biocraft Laboratories, Inc. (www.KraigLabs.com), a fully reporting biotechnology company is the leading developer of genetically engineered spider silk based fiber technologies. The Company has achieved a series of scientific breakthroughs in the area of spider silk technology with implications for the global textile industry.
Cautionary Statement Regarding Forward Looking Information
Statements in this press release about the Company’s future and expectations other than historical facts are “forward-looking statements.” These statements are made on the basis of management’s current views and assumptions. As a result, there can be no assurance that management’s expectations will necessarily come to pass. These forward-looking statements generally can be identified by phrases such as “believes,” “plans,” “expects,” “anticipates,” “foresees,” “estimated,” “hopes,” “if,” “develops,” “researching,” “research,” “pilot,” “potential,” “could”, “spectacular”, “dramatic”, or other words or phrases of similar import. Forward looking statements include descriptions of the Company’s business strategy, outlook, objectives, plans, intentions and goals. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. This letter does not constitute an offer to sell or the solicitation of an offer to buy any security.
Ben Hansel, Hansel Capital, LLC
(720) 288-8495
ir@KraigLabs.com