GTC Biotherapeutics (fka GTCB)

[DewDiligence]

That excerpt merely means that the BoD may reduce the authorization for Series D preferred shares after a partial or full conversion by LFB; however, the consequential point is that the BoD may not increase the authorization above 15K shares (convertible into 15M shares of common) without changing the corporate charter with the Mass. Secretary of State.

If LFB has converted its preferred shares in order to facilitate a deal, which is the most plausible explanation for what has transpired, we may assume that GTC intends to leave the preferred authorization at the existing limit of 15K shares.

LFB still owns 115 preferred shares, so GTC may not eliminate the Series D preferred class; moreover, there is no incentive for GTC to reduce (but not eliminate) the authorization limit.