Thursday, December 11, 2008

GTC shareholders approve $15M LFB financing deal

By Mass High Tech staff

Transgenic therapeutics company GTC Biotherapeutics Inc. has announced shareholder approval of three proposals, announced in November, relating to a $15 million financing agreement with French firm LFB Biotechnologies.

The proposals include LFB’s purchase of $15 million in GTC common stock and convertible debt; a 2 million share increase of common stock, per GTC’s 2002 Equity Incentive Plan; and an increase of 10 million authorized shares of GTC common stock.

The deal should bring in about $10 million in net proceeds, GTC officials said.

LFB, a wholly owned subsidiary of LFB SA, may convert the GTC stock after June 1, 2009, at 31 cents per share. LFB will also receive five-year warrants to buy 23.2 million shares of GTC stock at 31 cents per share. Following full debt repayment, LFB may then require GTC to cover the warrants at a cost of $1.5 million.

LFB has worked with Framingham-based GTC (Nasdaq: GTCB) on a few occasions in developing recombinant plasma proteins and monoclonal antibodies.

In May, LFB agreed to provide additional funding to GTC in order to include GTC’s recombinant human alpha-1 antitrypsin program in the development of recombinant plasma proteins and monoclonal antibodies.

GTC Biotherapeutics reported a net loss of $2.2 million on quarterly revenue of $9 million for the second quarter in 2008.