By Rebecca Melvin
New York, March 6 – Great Basin Scientific Inc. priced a total of 2,724,000 units at $8.80 each for proceeds of $23.97 million, with each unit consisting of one series E convertible preferred share and eight series C warrants, according to a release.
Dawson James Securities Inc. placed the deal.
The company sold 2,551,965 units for about $22.46 million on Tuesday and another 172,035 units for $1.51 million on Friday.
The units, preferred stock and warrants will separate automatically after six months on Aug. 25, 2015. There is early separation if shares exceed $4.00 for 20 consecutive trading days. Great Basin’s share reference price is $2.67 on Feb. 26.
Each convertible preferred share will be convertible into four shares of common stock, and the warrants are exercisable for one share of common stock at an exercise price of $2.55.
About $3.8 million of the proceeds is earmarked for research and development, including regulatory filings, and about $3.2 million is for sales and marketing expenses. Proceeds will also be used to expand manufacturing, to repay outstanding principal of a loan agreement and for general corporate purposes.
The units will be listed on the Nasdaq Capital Markets under the symbol “GBSNU.”
Salt Lake City-based Great Basin is a molecular diagnostic testing company that develops and makes test kits for single pathogen testing. It does business under the name Great Basin Corp.
| Issuer: | Great Basin Scientific Inc.
|
| Issue: | Units
|
| Amount: | $23,971,200, or 2,724,000 units
|
| Price: | $8.80 each
|
| Bookrunner: | Dawson James Securities Inc.
|
| Maturity: | On Aug. 25, 2015, the units consisting of convertible preferred shares and warrants will separate
|
| Early separation: | If shares exceed $4.00
|
| Convertible preferreds: | Convert into four shares of common stock
|
| Warrants: | Exercisable for one share at exercise price of $2.55
|
| Pricing date: | Feb. 26
|
| Closing dates: | March 3 (for $22,457,292); March 6 (for $1,513,908)
|
| Stock symbol: | Nasdaq: GBSN
|
| Proposed unit symbol: | Nasdaq: GBSNU
|
| Stock reference price: | $2.67 as of close Feb. 26
|
| Market capitalization: | $13.33 million
|
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