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Great Basin Starts Public Offering of Preferred Stock, Warrants

NEW YORK (GenomeWeb) – Great Basin Scientific today commenced a public offering of units consisting of preferred stock and warrants. 

The Salt Lake City-based molecular diagnostics company is offering 2,724,000 units at $8.80 per unit. Each unit consists of one share of Series E preferred stock and eight Series C warrants. Each Series E preferred share 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. 

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. 

In a prospectus filed last month for the offering, the company said 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 said. 

Upon the closing of the offering, the units will list on the Nasdaq under the ticker symbol "GGSNU." Dawson James Securities is the sole book runner for the offering, which is a "best efforts" follow-on offering, Great Basin said.

The company went public in October.

In afternoon trading, Great Basin's shares were down 4 percent at $2.45.