Replies to post #7897 on GTC Biotherapeutics (fka GTCB)

[joethdo]

I agree.

But I think if we lived in less interesting times they would have been able to secure a line of credit or another nondilutive facility. However, given that the banks are searching the world over for money to shore up their balance sheets, I think lending money to a money-losing biotech that MIGHT make it big is not at the top of their list.

They should have gone to the Massachusetts pension fund or something. I think it's high time that states started their own sovereign wealth funds to encourage the growth of small buisiness. (Yes, I'm only half-serious about that one.)

[St_armands_man]

Why not a loan...?

Why didn't GTCB get a loan

I'm sure GTCB would love to have been able to get a loan. But since they don't have a consistent income stream, or any guaranteed source of funds to pay back a loan, it would never happen (especially in today's lending environment).

Even with equity, part of the reason that the financing announced today wasn't done earlier was that it was contingent upon successful top line results.

The bottom line is that no one's going to put in millions of dollars, even equity dollars, without some assurance of success.