FRAMINGHAM, Mass., Oct 19, 2010 (BUSINESS WIRE) -- GTC Biotherapeutics, Inc. ("gtc" otcbb:GTCB.OB) announced today that on October 15, 2010 it received a letter from LFB Biotechnologies, S.A.S., Les Ulis, France ("LFB"), addressed to the independent members of GTC's Board of Directors indicating that LFB's Board of Directors had approved LFB making an offer to take GTC private for $.28 per share. The opening and closing prices of GTC Common Stock on Friday, October 15, 2010 on the over the counter markets were $.28 and $.34 per share, respectively.
The going private transaction, as proposed by LFB, would be structured as follows: LFB would purchase approximately 61 million shares of GTC Common Stock in a private placement for $0.28 per share, or an aggregate purchase price of approximately $17 million. After completion of the proposed private placement and conversion of convertible preferred stock of GTC owned by LFB, LFB would own at least 90% of GTC's outstanding Common Stock. Following the private placement, LFB would effect a short-form merger in accordance with Massachusetts law cashing out all minority shareholders for $.28 per share.
The Board of Directors of GTC has formed a committee of independent directors to evaluate and negotiate any such transaction on behalf of GTC. For additional information, please see GTC's filing on Form 8-K filed with the Securities and Exchange Commission regarding receipt of the above mentioned letter.