Replies to post #11233 on GTC Biotherapeutics (fka GTCB)

[DragonBits]

I agree, a RS makes the most sense, GTC could raise up to 5-10 times more cash after a RS than before.

If the RS gets turned down, then GTC might issue some of the remaining 74 million shares at ~.44, most likely along with warrants, and probaby at a lower price than 0.44 given the history on past deals.

LFB will probably ensure GTC survives, but LFB would extract a very high cost from GTC to do that.

And this wouldn't be much of a selling point for GTC and any future partners. Keep us alive or we cut off your supply of drug and doom your investment, great selling point.

IMO not a lot of pleasant choices for GTC, but I agree, the turmoil might well create a better buying point.

[DewDiligence]

>Unless it's the Tooth Fairy, a "finance only" partner will undoubtedly want something in return. If the "something" is interest, it's called a loan (like GE). If the "something" is a piece of the pie, it's called a partnership (like Leo and LFB). If the "something" is stock to play with, it's called a placement<

When I refer to a “finance only” partner, I’m talking about your second case: the partner gets a piece of future revenues but does not take an active role in drug development and does not acquire an equity stake in GTC. (Clearly, neither Leo nor LFB is a finance-only partner.)