Replies to post #15705 on GTC Biotherapeutics (fka GTCB)

[DragonBits]

Ok sorry, I see what you are saying, I was thinking no one buys out a biotech (or any stock) for the cash on hand, so I ignored what I thought was an irrelevant point.

While if LFB completes the loan and it goes after June 2009, then they own 52% of the company and it makes it difficult for anyone else to even think of buying it out because they would have so much control.

The more major aspect is GTC couldn't get much cash from the market nor partners for quite some time, makes it unlikely someone else will suddenly want to buy them out.

In reality they are getting bought out, just in three or four stages and shareholders are getting cut out.

Remains to be seen if shareholders get anything out of it. If GTC does a 1:20 RS I could see the stock sinking to 1.00 and that makes it 5 cents at current prices. The next loan could be for 10 million, and another 25% of GTC. The buyout when it comes for the remaining shares could be 1.50.

GTC might be an interesting sucker trade if they had 10 million shares outstanding and 1.50 in cash. I could see it getting pumped up on a the basis of it looking cheap.

[MTB]

"If an offer did come for GTCB it would be somebody who thinks that the material non-cash assets of GTCB are worth more than the liens already held against them . . ."

QT,

I don't mean to be caustic, but if you didn't believe the above, why in the world would you be wasting time reading this board??

Even amidst the rubble that Cox has created, "the material non-cash assets of GTCB" ARE worth a great deal more than current market valuations/liens would indicate.

What is not at all clear is if any well-capitalized outside group (beyond LFB) will realize this before the game is over for GTCB. Whatever happens, I don't think it at all likely that LT GTCB shareholders will remain other than deep in the hole.

Best,
MTB