NEW YORK (GenomeWeb) – Great Basin Scientific announced today that it is implementing a restructuring and cost reduction plan involving the elimination of 50 jobs and the streamlining of manufacturing and administrative processes.
A number of the cost reduction measures will begin immediately, and all are expected to be substantially completed by the end of the quarter, the company said. With these changes and other previous cost reductions, Great Basin expects to reduce its annual cash burn by $10 million to $12 million.
"Customer response to our expanding menu has been very positive, and we are undertaking these changes to assure that we are well-positioned to grow the company aggressively and sustainably," Great Basin Cofounder and CEO Ryan Ashton said in a statement.
Great Basin has also reached an agreement with holders of its 2016 convertible note to reduce the note's principal by $35.6 million to $36.3 million outstanding as of Feb. 9, 2017. In exchange, the amount of cash in the company's restricted cash account will be reduced to $21.5 million from $57.0 million.
"Our progress in terms of product menu, customer base and sales funnel expansion, along with the cost reductions we are implementing, led us to determine that the original funding available under the terms of the 2016 convertible notes was greater than we required," CFO Jeff Rona added. "We appreciate the investment and support from our noteholders and their willingness to work with us on reducing our debt obligation under the 2016 note."