By Rebecca Melvin
New York, Feb. 27 – Great Basin Scientific Inc. plans to sell $23.97 million of units, consisting of one share of series E convertible preferred shares and eight series C warrants on a best-efforts basis by Dawson James Securities Inc., according to a prospectus.
The units are being offered at $8.80 each. The units, preferred stock and warrants will separate automatically after six months. There is early separation if shares exceed $4.00 for 20 consecutive trading days. Great Basin’s share reference price is $2.67.
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: | $23.97 million
|
| Price: | $8.80 each
|
| Bookrunner: | Dawson James Securities Inc.
|
| Maturity: | After six months, 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
|
| 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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