It has certainly been a roller coaster ride for shareholders of Great Basin Scientific Inc (NASDAQ:GBSN) as the stock continues to move up and down fast enough to cause mild whiplash. After announcing that they have secured a $20.5 million funding commitment in senior convertible notes, much of which will be put to use in developing their product pipeline, the stock gained at the start of trading before plunging more than 10% over the course of the trading day thus far.
Out of the $20.5 million, approximately $18.4 million will be used for customer growth and product development, while the remaining $2.1 million will be used to retire some of Great Basin Scientific’s (NASDAQ:GBSN) Series C Warrants. While the funding certainly seems like a move which will take the company in the right direction, shareholders may be looking more towards the immediate future as new shares will continue to hit the market, diluting their ownership.
The stock is down 12.23% or $0.17 following the news, hitting $1.22 per share. About 3.41M shares traded hands or 111.80% up from the average. GBSN has declined 52.40% since May 26, 2015 and is downtrending. It has underperformed the S&P500 by 50.13%.
The institutional sentiment decreased to 1.6 in Q2 2015. It’s down 1.07, from 2.67 in 2015Q2. The ratio worsened, as 5 funds sold all their Great Basin Scientific Inc shares they owned while 0 reduced their positions. 4 funds bought stakes while 4 increased their total positions. Institutions now own 7.69 million shares which is 2268.79% more than the previous share count of 324,542 in 2015Q2.
Green Owl Capital Management Llc holds 0.31% of its total portfolio in Great Basin Scientific Inc, equating to 3.99 million shares. American International Group Inc owns 533 shares representing 0% of their total US portfolio. Moreover, Blackrock Institutional Trust Company N.A. has 0% of their total portfolio invested in the company, equating to 147,378 shares. The Illinois-based Citadel Advisors Llc has a total of 0% of their portfolio invested in the stock. Citigroup Inc, a New York-based fund reported 64 shares owned.
Great Basin Scientific, Inc. is a molecular diagnostic testing company. The company has a market cap of $5.22 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).