GTC Biotherapeutics (fka GTCB)

[croumagnon]

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.

It seems to me that LFB wants to keep GTCB alive and to take control, and this is the reason why they will exercise their options even though they do not have to, which allows them to also clean up some of the debt from the GTCB books. As for a takeunder deal, it is unlikely IMO although a takeover at a small premium is quite possible. After all, this is the French governement we are talking about and image is just as important to them as is financial benefit, so I doubt they will screw the shareholders royally. More likely, it will be your suggestion a) above that will occur.

As for the cash going forward, with $7.2 Million from the warrants, and the $6.8 Million they have already on hand, GTCB would then have $14 Million, which should be enough for a couple of quarters and perhaps this is plenty when you conssider the launch of ATryn and their royalties as well as the possibility of future partnerships...

I think it is time to take another stab at GTCB because I simply can not see them disappearing at this stage. The worse that could happen would be some cheap takeover by LFB at say $5 per share, which is still a reasonable return from these levels...