This cloak was once worn by Count Vamp, an exiled Boorum. It is unknown where he got it from, as the cloak is infused with strange, alien nanotech that enhances vitality when worn.
Without knowing the true origins of this garment, it is impossible to guess its original purpose.
The ingame appearance is different from the appearance in the item viewer, which is currently bugged, here is an image showing the ingame appearance:
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Loots
This item has been reported to drop from these creatures.