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Great Basin Secures $75M Funding Commitment in Senior Convertible Notes

NEW YORK (GenomeWeb) – Great Basin announced yesterday it has entered into a securities purchase agreement with institutional investors to issue $75 million of senior convertible notes.

The transaction will be structured as original issue discount notes, with the company receiving $68 million in cash with no additional interest accruing for the duration of the notes.

Under the terms of the agreement, $6 million will be unrestricted and immediately available, while $62 million will be held in an account and disbursed in 15 monthly installments beginning in February 2017. Disbursement is subject to shareholder vote and certain equity conditions, Great Basin said in a statement.

"With these funds we expect to expand our product menu to nine commercially available tests, creating the potential for substantially increased revenue per customer," Ryan Ashton, co-founder and CEO of Great Basin, said in a statement.

The firm recently launched an enhanced version of its molecular diagnostics platform. Last week the Nasdaq listing qualifications panel also granted the company's request for the continued listing of its common stock on the Nasdaq.

"We value the vote of confidence we believe this financing represents," Great Basin CFO Jeff Rona said in a statment. "These institutions have supported us for some time, have seen the company's consistent delivery on our customer and menu expansion targets, and recognize the enormous opportunity Great Basin has ahead."