GTC Biotherapeutics Announces One-for-Ten Reverse Stock Split
“Implementing the reverse stock split is an integral part of GTC's progress towards securing additional funding,” stated Geoffrey F. Cox, Ph.D., GTC's Chairman of the Board and Chief Executive Officer. “The lower outstanding share count will meet continued listing requirements and establish additional authorized shares for new investments. We anticipate updating the market on the financing progress before the end of June.”
The reverse stock split is expected to increase the market price of GTC's common stock to meet the $1.00 per share minimum share price requirements for continued listing on the NASDAQ Capital Market. The reverse stock split will reduce the number of shares GTC's common stock outstanding from approximately 104,391,892 to approximately 10,439,189. There will continue to be 210,000,000 authorized shares of common stock.
Information for Shareholders
Upon the effectiveness of the reverse stock split, GTC stockholders will receive one new share of GTC common stock for every ten shares held. Registered holders of GTC common stock holding stock certificates will receive a letter of transmittal from GTC's transfer agent, American Stock Transfer & Trust Company, with instructions for the exchange of stock certificates. No action is required by stockholders holding GTC common stock in book-entry form. American Stock Transfer & Trust Company will act as the exchange agent for the reverse stock split and can be reached at (718) 921-8155.
GTC will not issue fractional shares as a result of the reverse stock split. Following the reverse stock split, shareholders holding a fractional share of GTC's common stock will receive a cash payment from the exchange agent in an amount equal to the value of such fractional share. Shareholders with shares in brokerage accounts should contact their brokers with any questions, as some brokers may have different procedures for payment of fractional shares.
About GTC Biotherapeutics
GTC Biotherapeutics develops, supplies and commercializes therapeutic proteins produced through transgenic animal technology. ATryn®, GTC's recombinant human antithrombin, has been approved for use in the United States and Europe. ATryn is the first and only product produced in transgenic animals to be approved for therapeutic use anywhere in the world. In addition to ATryn, GTC is developing a portfolio of recombinant human plasma proteins with known therapeutic properties. These proteins include recombinant forms of human coagulation factors VIIa and IX, which are being developed for the treatment of hemophilia. GTC is also developing a portfolio of follow-on biologic monoclonal antibodies and a CD20 antibody with enhanced ADCC (antibody-dependent cell-mediated cytotoxicity). GTC's intellectual property includes a patent in the United States through 2021 for the production of any therapeutic protein in the milk of any transgenic mammal. GTC's transgenic production platform is particularly well suited to enabling cost effective development of proteins that are difficult to express in traditional recombinant production systems as well as proteins that are required in large volumes. Additional information is available on the GTC web site, http://www.gtc-bio.com.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including without limitation the prospects for future funding. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such statements. Factors that may cause such differences include, but are not limited to, the risks and uncertainties discussed in GTC's most recent Annual Report on Form 10-K and its other periodic reports filed with the Securities and Exchange Commission, including the uncertainties associated with conducting clinical studies, and the risks and uncertainties associated with dependence upon the actions of collaboration partners and regulatory agencies. GTC cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this document, and GTC undertakes no obligation to update or revise the statements, except as may be required by law.
Contact: GTC Biotherapeutics, Inc.
Thomas E. Newberry, 508-370-5374
Vice President, Corporate Communications
and Government Relations
Posted: May 2009