Biotech Values

[DewDiligence]

GTCB share count for valuation purposes:

As of today (Aug 3), GTC has approximately 73.4M basic shares outstanding (#msg-12422836) including the 12M shares issued in the July direct placement.

Adding in the 11.3M options and warrants disclosed in GTC’s 2005 10K report and the 7.8M warrants issued in the July direct placement brings the total diluted shares to 73.4+11.3+7.8=92.5M.

However, 4M older options and warrants are so colossally out-of-the-money that they cannot affect the share count under any plausible near-term or medium-term scenarios. Hence, the effective diluted share count I use for valuation purposes is 92.5-4.0 = 88.5M.