GTC Biotherapeutics (fka GTCB)

[DewDiligence]

I think the plan is for LFB to convert its note into common shares at $3.1, and also exercise its rights for the warrants at $3.1 very soon…

LFB’s warrants are exercisable through Dec 2013; hence, there is no impetus for LFB to exercise the warrants now unless the plan is to install a majority on the BoD and then: a) clean house before GTC’s management can do any more harm; or b) press for a takeunder deal.

I think we have to assume that going forward LFB will be in the driver's seat and it remains to be seen whether that is bad or good for the stock. I am now of the opinion that the stock will benefit from this arrangement because anything is better than Cox running the show, and this is why I bought a small position in GTCB today...

In other words, you expect LFB to pursue plan a) above. In this case, GTC still needs to raise about $35M to have a year’s worth of operating cash on hand.