If you go back just a few short weeks ago, shares of Great Basin Scientific Inc (NASDAQ:GBSN) were trading well over $14, and investors seemed to be quite pleased with their solid gains. After all the stock had just jumped by more than 400%. Fast forward to this morning, and shares are trading at a fraction of the price they were at prior to the 400%+ gains seen in late November. The reason? It seems that now the main culprit is the conversion of the company’s Series C Warrants, which are having a major toxic effect on the stock as several waves of newly issued common shares make their way into the market, diluting shareholders on a massive scale.
Dilution is a pennystock trader’s worst nightmare, and that’s just what has been happening over the last few weeks. The stock has dropped by more that 92% over the last 17 trading days, and is down the last 7 consecutive days of trading. According to the latest report from Great Basin Scientific Inc (NASDAQ:GBSN) there are still 100,297 shares of Series E Convertible Preferred Stock outstanding and 9,164,313 Series C Warrants outstanding. This means that there is a strong possibility that even more common stock will be coming into the market following the Christmas holiday, likely putting further pressure on the share price.
The stock has fallen 25.26% or $0.41 following this negative news, hitting $1.21 per share. Approximately 575,150 shares traded hands. GBSN shares have declined 52.77% since May 20, 2015 and are currently downtrending. It has underperformed the S&P500 by 50.51%.
The institutional sentiment decreased to 1.6 in Q2 2015. It’s down 1.07, from 2.67 in 2015Q2. The ratio dropped, 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 $3.85 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).