Replies to post #15269 on GTC Biotherapeutics (fka GTCB)

[DragonBits]

jesse, lost that faith in the partners bailing out GTC?

The way LFB bails out GTC, in another year they will own 80% of the company. Which is what I said would happen, this is like weak partners with a strong partner in an IPO. The IPO company needs more cash, the weak partners have no cash and diluted out of exisitance. Seen it happen before.

If GTC is as valuable as you think, then rather than see GTC go into Chapter 11, LFB should offer to buy them out for more than 31 cents.

If GTC isn't valuable, then all is lost regardless of vote.

I guess LFB can't buy stock that is being sold, or can they? Anyone know. If they buy up stock now, they can vote the loan themselves, but I would think they would have to file if they bought.

[vinmantoo]

Jesse,

Cox and the board aren't doing everything they can. They haven't made any real moves to cut cash burn, to cut executive salaries, to lay off workers. No. GTCB is in trouble, but do they shelve projects that won't come to fruition for 5 or 10 years? No, they keep everything going as if they had unlimited cash. Yes it would suck if people were laid off, but that is business. GTCB needs to think near term for now, and then expand back when the cash situation improves. If GTCB doesn't want to cut 30% of its work force, then reduce everyone's salaries by 30%. If Cox cares so much about the workers, then he can take all of his salary in stock and the $600K can be used to let several employees keep their jobs.

If Newberry did mock the $90 million deal, as Dew said, then he is more clueless than I imagined. If we had been able to sell the rights to one of our projects for $90 million, we could have avoided major dilution over the past two years. Didn't we dilute about 40% over that time? Let's fantasize and say that GTCB pulls out of it and becomes a $1 billion dollar company in two years. Our share of that $1 billion is now only $600 million due to the 40% dilution. That means the current shareholders lost $400 million in value because GTCB and Newberry mocked a $90 million payment.