Based on the shareholder vote today, GTC’s cash balance upon the closing of the last tranche of the LFB transaction in early January will be $50-54M (#msg-14474900).
In #msg-13731209, I calculated the effective share count for valuation purposes following the completion of the LFB transaction to be 106.8M. However, in that calculation I treated the $2.6M term loan from LFB as debt rather than equity.
Because the LFB loan has a term of five years and converts into common shares at the share price of GTC’s next financing, it probably makes more sense to treat the loan as equity for valuation purposes. If we assume that the next financing occurs at a price of 2.00 (a different price would not change the bottom line by much), the loan will eventually add 1.3M shares.
Adding 1.3M shares to the figure above gives an effective share count for valuation purposes of 108M.
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