NEW YORK (GenomeWeb) – Great Basin Scientific today said that it has restructured its outstanding convertible securities, providing it access to previously restricted cash.
The firm reached agreements with holders of its 2016 convertible notes, Series F preferred stockholders, and holders of related warrants to purchase common stock in a three-stage restructuring of its outstanding convertible securities. As a result, noteholder controlled variable-rate conversions have been eliminated, giving Great Basin immediate access to $800,000 in cash, as well as access to an additional $10.8 million in capital through new Senior Secured Series B convertible notes with a mandatory conversion feature.
The restructuring reduces the firm's derivative liabilities and strengthens its balance sheet, Great Basin said.
"With this expanded menu, we expect to accelerate [the] operational progress in 2017, including significant revenue growth in the second half of the year," Great Basin CEO Ryan Ashton said in a statement. "By completing this financial restructuring, we believe we have made equal progress on our capital structure."
Great Basin now has five US Food and Drug Administration-cleared assays. Last week, the company received FDA clearance for its whooping cough test. In February, Great Basin announced a restructuring and cost reduction plan, eliminating 50 jobs and streamlining its manufacturing and administrative processes.