SALT LAKE CITY--(BUSINESS WIRE)--Great Basin Scientific, Inc. (NASDAQ:GBSN), a molecular diagnostics company, announced today that it has entered into a definitive agreement with the holders of approximately 69% of its outstanding Series C Warrants to amend the terms of the Series C Warrants.
The amendments to the Series C Warrants provide in material part that once the current Authorized Share Failure (as defined in the Series C Warrants) is cured through either the implementation of a reverse stock split of the Company’s common stock or an increase in the number of authorized shares of common stock, in each case through the filing of an amended Certificate of Incorporation with the Delaware Secretary of State following shareholder approval, the Series C Warrants will then be exercisable for only 25 more trading days.
Upon the expiration of the 25 trading-day period, any remaining issued and outstanding Series C Warrants will be automatically deemed exercised based on the cashless exercise formula as currently contained in the Series C Warrants.
The amendments also clarified the ownership position of the Series C Warrants relative to the Company’s common stock prior to exercise of the Series C Warrants and clarified that additional standstill periods will be granted for future Authorized Share Failures, should they occur.
The amendments are described in more detail in the Company’s Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission on December 7, 2015.
As of December 3, 2015, there were approximately 12.8 million Series C warrants that remained outstanding, representing approximately 60% of the number originally issued. Based on the closing bid price for the Company’s common stock on December 3, 2015, if all of the currently outstanding Series C Warrants were exercised pursuant to the cashless exercise provision contained therein, the Company would issue 167 million shares of common stock, representing 88% of the Company’s current issued and outstanding.
Roth Capital Partners acted as the Company’s financial advisor in connection with the modifications of the Series C Warrants.
About Great Basin Scientific
Great Basin Scientific is a molecular diagnostics company that commercializes breakthrough chip-based technologies. The Company is dedicated to the development of simple, yet powerful, sample-to-result technology and products that provide fast, multiple-pathogen diagnoses of infectious diseases. The Company's vision is to make molecular diagnostic testing so simple and cost-effective that every patient will be tested for every serious infection, reducing misdiagnoses and significantly limiting the spread of infectious disease. More information can be found on the Company's website at www.gbscience.com.
Forward-Looking Statements
This press release includes forward-looking statement regarding events, trends and business prospects, which may affect our future operating results and financial position, including statements regarding the future exercise of the Series C Warrants and the number of shares of common stock that may be issued to settle any such exercises. Forward-looking statements involve risk and uncertainties, which could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risk and uncertainties include, but are not limited to: (i) our limited operating history and history or losses; (ii) our ability to develop and commercialize new products and the timing of commercialization; (iii) our ability to obtain capital when needed; and (iv) other risks set forth in the Company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. These forward-looking statements speak only as of the date hereof and Great Basin Scientific specifically disclaims any obligation to update these forward-looking statements, except as required by law.