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Great Basin Shares Fall on Plans to Restructure Warrants

NEW YORK (GenomeWeb) - Shares of Great Basin Scientific dropped 12 percent today in morning trading on the Nasdaq on news that the molecular diagnostics firm will restructure its Series C Warrants.

The Salt Lake City-based firm has retained Roth Capital Partners as a financial advisor to assist in restructuring warrants issued as part of its recent follow-on public offering in March. Great Basis is also preparing to file a proxy statement and hold a special shareholder meeting to seek approval to effect a reverse stock split and authorize additional common shares to meet its obligation to deliver common shares under the cashless exercise provision of the Series C Warrants.

“While the recent Series C Warrant exercises have put our stock under greater than expected pressure, we remain on plan for our 2015 goals of securing 170 to 180 customers and four FDA-cleared products," Ryan Ashton, Great Basin president and CEO, said in a statement, adding that the funds raised in March are being used to expand the R&D and sales teams.

Great Basin raised $20.5 million in its March offering.

Its shares were down a penny at $.06 in mid-morning trade. Its 52-week trading range is between a low of $.05, which was reached this morning, and a high of $9.08.