Print
Email
Print Edition StoriesFriday, June 19, 2009
GTC collects $12.3M in stock, debt from shareholder LFB
By Mass High Tech staff
MHT's Marc Songini: Technology to keep seniors healthy
MHT's Efrain Viscarolasaga: Tech companies may have to wait for stimulus funds
MHT's Marc Songini: Mass. bio firms prep for lifting of stem cell ban
Framingham-based GTC Biotherapeutics Inc. and French firm LFB Biotechnologies have entered an agreement in which LFB, a GTC shareholder, will offer $12.3 million in funding to GTC, with an option for an additional $6.4 million in cash.
The funding is made up of bridge debt that may be converted to preferred stock. The convertible stock will consist of about 4.5 million shares at $2.63 per common share, and the common stock consists of at least 5.1 million shares at $2.63 per share or the market price at shareholder approval. According to a statement by GTC chairman and CEO Geoffrey Cox in a press release, the agreement with LFB comes after “a careful and extensive assessment of the alternative opportunities available to us in the capital markets.”
LFB also may provide $3.5 million in term debt to GTC to assist in GTC’s principal loan repayment to GE Capital. In total, LFB has the option to provide more than $22 million in loans and stock options to GTC.
GTC (Nasdaq: GTCB) develops therapeutic proteins produced through transgenic animal technology. Its ATryn antithrombin is approved for use in the United States and Europe.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
