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Great Basin Completes Follow-on Public Offering, Raises $20.5M in Net Proceeds

Great Basin subsequently did a second and final closing on its public offering and said that it raised a total of $21.8 million in net proceeds. 

NEW YORK (GenomeWeb) – Great Basin Scientific today said that it completed a follow-on offering that raised net proceeds of $20.5 million. 

The offering comprised 2,551,965 units at $8.80 per unit, with each unit consisting of one share of Series E preferred stock and eight Series C warrants. Each share of Series E stock will be convertible into four shares of common stock and each Series C warrant will be exercisable into one share of common stock at an exercise price of $2.55 per share. Gross proceeds from the offering were $22.5 million. 

If at any time after March 27 the closing price of Great Basin's shares is more than $4 for 20 consecutive days, the units will automatically separate into Series E preferred stock and Series C warrants. Otherwise, the units will automatically separate on Aug. 25. The units began trading today on the Nasdaq Capital Market under ticker symbol "GBSNU." 

Dawson James Securities is the sole underwriter on the offering. 

The Salt Lake City-based molecular diagnostics firm said in a prospectus filed in January for the offering that net proceeds will be used to fund the company's operations, including the completion of planned clinical trials and a filing with the US Food and Drug Administration for its Staph ID/R and Shiga toxin-producing Escherichia coli diagnostic tests. Additionally, proceeds will go toward R&D, sales and marketing, manufacturing of instruments, automation of the firm's manufacturing facility, and increasing its manufacturing capacity.

Great Basin went public in October.