GTC Biotherapeutics (GTC) has signed agreements with LFB (a wholly-owned subsidiary of LFB S.A) to provide a total of $12.3 million of cash proceeds to GTC, with an option to provide up to an additional $6.4 million of cash proceeds.
The financing consists of bridge debt and subject to GTC shareholder approval, convertible preferred stock.
GTC is receiving $4 million of cash proceeds under a $4.5 million secured convertible bridge note delivered upon signing, with an additional $8.3 million of cash proceeds due upon the receipt of GTC’ shareholder approval and issuance of the convertible preferred stock. The bridge debt will automatically convert into convertible preferred stock, upon shareholder’ approval.
Geoffrey Cox, CEO and Chairman, GTC, said: “GTC has entered into this financing arrangement with LFB following a careful and extensive assessment of the alternative opportunities available to us in the capital markets. In today’s challenging capital markets a continuing committed strategic investor such as LFB is highly valuable to the future of GTC.”