Shares of Great Basin Scientific Inc (NASDAQ:GBSN) are down considerably today folllowing news that the company has entered into an agreement with the holders of around 69% of its outstanding Series C Warrants to amend the terms of the these warrants. Under the modifications, these warrants will now be exercisable for 25 days, and upon their expiration, any outstanding warrants will be automatically exercised based on the cashless exercise formula.
Since there were approximately 12.8 million Series C Warrants outstanding for Great Basin Scientific Inc (NASDAQ:GBSN), if all the warrants are exercised, based on Fridays close price, this would equate to 167 million shares of common stock. This would represent 88% of the company’s oustantind shares. Clearly shareholder see this as having a major dilutive effect on their ownership and thus have been selling off shares today. The stock has fallen 19.16% or $0.032 following this negative news, hitting $0.135 per share. Approximately 23.89M shares traded hands. GBSN shares have declined 95.84% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 94.76%.
The institutional sentiment decreased to 2.67 in Q2 2015. It’s down Infinity, from Infinity in 2015Q1. The ratio fall, as 2 funds sold all their Great Basin Scientific Inc shares they owned while 1 reduced their positions. 6 funds bought stakes while 2 increased their total positions. Institutions now own 324,542 shares which is 474.04% more than the previous share count of 56,536 in 2015Q1.
Green Owl Capital Management Llc holds 0.13% of its total portfolio in Great Basin Scientific Inc, equating to 62,000 shares. Sabby Management Llc owns 51,771 shares representing 0.01% of their total US portfolio. Moreover, A.R.T. Advisors Llc has 0% of their total portfolio invested in the company, equating to 12,226 shares. The California-based Blackrock Institutional Trust Company N.A. has a total of 0% of their portfolio invested in the stock. Citadel Advisors Llc, a Illinois-based fund reported 16,596 shares owned.
Great Basin Scientific, Inc. is a molecular diagnostic testing company. The company has a market cap of $29.65 million. The Firm is focused on the development and commercialization of its molecular diagnostic platform designed to test for infectious disease. It currently has negative earnings. The Firm has a commercially available test, a diagnostic test for clostridium difficile , which received clearance from the Food and Drug Administration (FDA).