GTC Biotherapeutics (fka GTCB)

[DewDiligence]

GTC cannot simply execute a reverse split—they have to put it to a shareholder vote first. Hence, the first indication that management is interested in a possible RS would be the inclusion of such a proposal in the proxy for the 2008 annual meeting.

The annual-meeting proxy on SEC Form DEF14a (or PRE14a for a preliminary version) is due any day.

In my opinion, a reverse split is a non-issue insofar as it does not change anyone’s equity stake. It may even be a good thing if it helps the stock stay on the NasdaqGM. In any case, putting a reverse split to a shareholder vote is hardly the kind of action that justifies a major sell-off. If this is in fact the only impetus for today’s price action, I’ll be very pleased.