Great Basin Announces Reverse Stock Split of Common Stock
March 25 2016 - 1:20PM
Business Wire
Great Basin Scientific, Inc. (NASDAQ:GBSN), a molecular
diagnostics company, announced today a 1-for-35 reverse split of
its common stock. The Company expects that it will be effective at
5:00 pm EDT on March 30, 2016 and that the Company’s common stock
will open for trading on the Nasdaq Capital Market on Thursday,
March 31, 2016 on a post-split basis. At the effective time of the
reverse stock split, every 35 shares of the Company’s issued and
outstanding common stock, par value $0.0001, will be consolidated
into 1 newly issued and outstanding share of common stock, par
value of $0.0001.
The reverse stock split will reduce the number of shares of the
Company’s outstanding common stock from approximately 114.2 million
to approximately 3.3 million. Proportional adjustments will be made
to the Company's outstanding preferred shares, stock options,
warrants, and equity incentive plan. The number of authorized
shares of the Company's common stock will remain unchanged.
“Just under 75% of Great Basin stockholders who voted on the
reverse split at the special meeting voted in favor of this
action,” said Ryan Ashton, co-founder and Chief Executive Officer
of Great Basin Scientific. “As we stated in our proxy materials
filed on March 1, 2016, we believe this reverse-split is an
important step in attracting investment from institutions who are
prevented from owning stock in companies whose shares trade below
certain amounts and toward meeting our NASDAQ listing
requirements.”
Ashton continued, “We recognize that some investors are
concerned about the impact of a second reverse split so soon after
the reverse we effected on December 14, 2015, but with the Series C
Warrants now terminated, we hope investors can see that the current
situation is very different.”
Stockholders who have existing stock certificates will receive
written instructions by mail from the Company's transfer agent,
American Stock Transfer & Trust Company, LLC. Stockholders who
hold their shares in brokerage accounts or "street name" are not
required to take any action to effect the exchange of their shares.
Such stockholders will be contacted by their brokers with
instructions. To the extent the reverse stock split would result in
a stockholder owing a fractional share, such stockholder will have
the number of post-reverse split shares to which they are entitled
rounded up to the next whole number of shares. No stockholders will
receive cash in lieu of fractional shares.
Additional information regarding the Company's reverse stock
split is available in the definitive proxy statement filed by the
Company with the U.S. Securities and Exchange Commission (SEC) on
March 1, 2016.
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.
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 effective date of the reverse stock split, the
reverse split creating a higher stock price that attracts
institutional investors, the Company’s ability to regain compliance
with NASDAQ listing requirements and similar statements.
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 Annual Report on
Form 10-K for the year ended December 31, 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.
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Media:ICRKate Ottavio Kent,
203.682.8276Kate.Ottavio-Kent@icrinc.comorInvestor
Relations:CorProminenceScott Gordon,
516.222.2560gbinfo@corprominence.comorICRDavid Clair,
646.277.1266David.Clair@icrinc.com