LFB Biotech Exercise Option to purchase $12.80M in Additional Convertible Shares of Preferred from GTC Biothera (GTCB)

November 2, 2009 9:25 AM EST

GTC Biotherapeutics, Inc. (NASDAQ: GTCB) announced that LFB Biotechnologies, a strategic shareholder in GTC, has exercised its option to purchase $12.8 million of additional convertible preferred stock under the terms described in the financing agreements approved by GTC shareholders in July 2009.

This transaction provides $6.4 million of new cash proceeds to GTC. In addition, LFB has converted the convertible preferred stock it previously purchased under these agreements in July into a total of 10.6 million shares of common stock to support GTC's market capitalization under NASDAQ's listing qualification rules. LFB has also entered into agreements with GTC to purchase $3.6 million of common stock at the October 30, 2009 market closing price of $1.07 per share, subject to customary closing conditions. This transaction provides LFB with a further 3.4 million shares of common stock.

"LFB shares GTC's vision of being an innovative company -- trading on the NASDAQ market -- that is developing recombinant versions of plasma proteins and monoclonal antibodies, including biosimilars," stated Christian Bechon, LFB's Chairman & CEO. "GTC's unique approved transgenic production technology enables us to jointly meet cost and production capability targets that provide a significant competitive advantage over other production systems. We particularly look forward to further advances in our joint factor VIIa program for hemophilia which is planned to move into the clinic in the first half of 2010."

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?