GTC Biotherapeutics (fka GTCB)

[St_armands_man]

>Newberry made the statement to me that they didn't want to let a potential partner feel that it was to their advantage to delay any deals. If a potential partner felt that the delay would drive GTCB's cash position into one of desperation, they'd delay as long as possible hoping to put themselves into a better negotiating position.<

Dew's response - With all due respect to Mr. Newberry (who is a good IR man, IMO), I interpret the above as propaganda. Newberry is saying this because he knows it’s the kind of story that will convince people who read message boards.

Dew - I suggested that this might be the logic behind todays financing way before I talked with Newberry (post 7778). I'm the CFO of a company and have been through a ton of negotiations over the years. "Delaying" the close of a negotiation is a classic move in situations like this. Trust me...if GTCB appears to be in a short term cash poor position, I'm going to leverage it for all I can. If on the other hand, it appears that GTCB is going to be okay for awhile, and may even have time to talk with other potential partners, I'm going to be more aggressive in getting to a conclusion.

As I said before, a partnership may not happen for awhile...but having extra cash on hand only improves the chances of getting to a successful result.