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Great Basin Withdraws Plan to Raise $8M

NEW YORK (GenomeWeb) – Great Basin Scientific announced today that it will no longer pursue a previously announced plan to raise $8 million in equity financing.

The firm has asked the US Securities and Exchange Commission to withdraw its S-1 registration statement connected to the planned financing, as a result. 

Great Basin had intended to raise additional funds when it entered into a convertible note financing last July, saying it anticipated needing the additional funds to finance operations in late 2016 through early 2017.

However, Great Basin CFO Jeff Rona said today that operating cash needs have been below forecast and "we determined the additional funds were unnecessary at this time and decided not to proceed with the planned financing." The firm has also seen "higher-than-expected efficiency" of its instruments placed at customer sites, "making it possible to potentially meet our revenue targets manufacturing fewer instruments," Rona further said.

The firm said it currently has $58 million in restricted cash from the 2016 convertible note financing.

Great Basin also announced an amendment agreement with holders of the 2016 convertible note. "Currently, the company does not meet the equity conditions for the release of restrictions on funds under the 2016 notes, but management believes that noteholders are receptive to amending or waiving those conditions and that funds will be available on a timely basis to continue to finance the company’s ongoing operations," it said. 

Great Basin shares were delisted from the Nasdaq in December due to the company's failure to maintain a minimum market value of $35 million. Its share price also failed to meet the exchange's $1 minimum bid price requirement. The firm's shares have begun trading on the over-the-counter market and it recently effected a reverse stock split. 

The firm submitted a stool pathogen test to the US Food and Drug Administration last month. CEO Ryan Ashton said today that the company anticipates submission of its Bordetella Direct Test soon as part of a planned expansion of its molecular testing menu from four to six assays this year.