>From your reaction I got the impression you do not value the merits of this deal short term…<
That’s not exactly correct—I do think the LFB deal has some benefit in the short term because it eliminates the fear that GTC will have to do another financing transaction. Whether that’s enough to overcome the dilution and any lingering skepticism about the deal remains to be seen.
As previously posted, my overall assessment of the deal is neutral. I like the partnership, but I think GTC gave up too much equity for a payoff that won’t come for many years.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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