Spider silk-based fiber developer Kraig Biocraft Laboratories Inc., Ann Arbor, Mich., has signed an agreement with the University of Notre Dame that increases the university’s equity position in Kraig Labs. The university and Kraig Labs collaborated for 10 years to develop the recombinant spider silk technologies. The deal converts a portion of money owed to Notre Dame into common stock. The remaining balance of money owed to the university has been converted into a note that is payable over a two-year period.
“Today, we are pleased to report that, having now finalized this agreement, [Notre Dame] have nearly tripled their equity position in the company,” said Jon Rice, COO, Kraig. “The deal has strengthened the company’s balance sheet and, in conjunction with the equity financing announced [recently], improves our financial position, as we move towards larger scale production.”