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GTC Biotherapeutics to Raise $16.7 Million


GTC Biotherapeutics to Raise $16.7 Million in Registered Direct Offering
Thursday December 8, 11:18 am ET


FRAMINGHAM, Mass.--(BUSINESS WIRE)--Dec. 8, 2005--GTC Biotherapeutics, Inc. ("GTC", Nasdaq: GTCB) announced today that it has obtained agreements from select institutional investors to purchase approximately 9.1 million shares of GTC's common stock at a price of $1.78 per share, the closing bid price for the common stock immediately before entering into the binding agreements for the transaction. Under the terms of the financing, GTC will also issue 5-year warrants to purchase an aggregate of approximately 3.6 million additional shares of GTC's common stock at an exercise price of $2.05 per share. At the closing, investors in the financing will pay an additional purchase price equal to $0.125 per each share issuable upon exercise of the warrants. The closing of the offering is expected to take place on December 13, 2005, subject to the satisfaction of customary closing conditions.
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The shares and warrants are being offered under a shelf registration statement previously filed with the Securities and Exchange Commission, which was declared effective on November 14, 2005. SG Cowen & Co., LLC served as lead placement agent for the offering and Rodman & Renshaw, LLC acted as co-agent for the transaction.

GTC estimates gross proceeds from the financing will be approximately $16.7 million. The net proceeds of the financing will be used for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the prospectus and the prospectus supplement can be obtained from SG Cowen & Co., LLC, 1221 Avenue of the Americas, New York, NY 10020, fax [phone].