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Great Basin Files to Raise $10M

NEW YORK (GenomeWeb) – Great Basin Scientific today filed with the US Securities and Exchange Commission to raise $10 million through an offering of securities units comprising stocks and warrants.

In Great Basin's S-1 registration, the firm said it will offer $8 million in Class A units, consisting of shares of the firm's common stock and Series J Warrants, and $2 million in Class B units, comprised of one prefunded Series K warrant to purchase an unspecified number of shares of its common stock together with Series J Warrants.

The funds raised in this offering will be used to fund the firm's operations for up to four months following the closing of the offering. This will include the continued expansion of sales of the firm's four currently approved tests and the regulatory process seeking approval for two tests currently under review by the US Food and Drug Administration, according to the registration statement.

The company has not priced the units or said how many A or B units it plans to offer.

The firm withdrew a planned S-1 registration statement last month after determining operating cash needs were below forecast and additional funds were unnecessary. Last week it announced a restructuring plan that eliminated about 50 jobs, and it also reached an agreement with holders of its 2016 convertible notes to reduce the notes' principal by about half, stating that the original funding available under the terms of the notes was greater than the company required.

Great Basin went public in October of 2014, but was delisted from the Nasdaq last year and now trades on the over-the-counter market.