Great Basin Scientific Inc (NASDAQ:GBSN)
Great Basin Scientific Inc (NASDAQ:GBSN) shares are down over 16% on normal volumes. The Salt Lake City, UT-based firm today announced the release of $1.36 million by the owners of the 2017 Series B Senior Secured Convertible Notes. The deal for the Series B Notes was filed with the SEC on May 12, 2017 and listed an aggregate purchase price of $850,000.
The cash release came with terms. Great Basin Scientific Inc (NASDAQ:GBSN) reduced, until July 14, 2017, the conversion price of the Series B Notes to $1.10 per share. The conversion price will return to the $3.00 pricing after July 14. Should the holders convert all the shares available to them, it will result in their receiving 1.24 million GBSN shares. Further, the release of the restricted cash also eliminated the variable pricing conversion features of the Series B Notes. The shares owned by the holders of the Series B Notes will be held to a 35% leak-out provision – from 15 days from May 15, 2017 or $4 million worth of shares traded – whichever comes first. This provision is used to keep insiders from selling large chunks of shares that could negatively impact the market price due to lower levels of liquidity.
Ryan Ashton, co-founder and chief executive officer of Great Basin Scientific Inc (NASDAQ:GBSN) expressed approval for the deal. Mr. Ashton related that the funds would be used for growth efforts and general corporate purposes. He also noted that this cash injection will allow Great Basin Scientific Inc (NASDAQ:GBSN) to simplify its capital structure and help potential investors better understand the company’s value and strategic plans.
Founded in 2005, Great Basin Scientific Inc (NASDAQ:GBSN) was founded in 2005 as a molecular diagnostics company. Its core competency is to diagnose and significantly limit the spread of infectious disease. Health providers are the target client of Great Basin Scientific who supplies them with the ability to accurately and timely diagnose infectious diseases, and to improve patient outcomes. Great Basin Scientific also provides antimicrobial stewardship resulting in shorter hospital stays and dollars saved.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.