GTC Biotherapeutics, Inc. (“GTC”, NASDAQ: GTCB) announced that LFB Biotechnologies, a wholly owned subsidiary of LFB S.A. (Laboratoire français du Fractionnement et des Biotechnologies S.A., Les Ulis, France) and 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 Béchon, 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.”
“LFB has demonstrated its strong commitment to GTC in both the pipeline of programs in the joint venture collaboration and its continuing strategic investment in our company,” stated Geoffrey F. Cox, Ph.D., GTC’s CEO and Chairman of the Board. “LFB’s commitment is particularly valuable in the uncertain market conditions for small and growing biotechnology companies. The investments and conversion into equity announced today are very important stepping stones to help GTC’s goal to meet NASDAQ’s listing compliance requirements. In addition to these equity transactions, GTC will be reducing expenses by focusing on the ATryn® and factor VIIa programs, which is expected to generate savings of $5 – 6 million in 2010.”
Merriman Curhan Ford acted as financial advisor to GTC in this transaction.
GTC Biotherapeutics, Inc.