GTC Biotherapeutics (fka GTCB)

[DewDiligence]

The “going concern” qualification is all but automatic if the cash on hand at the beginning of the fiscal year ($15.9M) less the expected cash burn for the fiscal year ($28M) is less than zero. This is presumably the reason GTC sought to raise $20M in February.

However, the going concern qualification does not imply that the company will actually run out of money; rather, it is a direct consequence of the delay in inking a US partnership. Had the partnership been inked by the time the 10K was due, the going concern qualification could have been averted.

If the above was indeed the impetus for yesterday’s price action, it was a major overreaction, IMO.