Shares in molecular diagnostics company Great Basin Scientific Inc (NASDAQ:GBSN) collapsed 53.28% on Friday to close at $0.135 after the company issued new shares in conversion of its debt.
The company issued new shares to its 2015 Notes holders and as a result the outstanding shares jumped from 2.52 million to 17.01 million.
Serial conversions of debt into equity and the resultant dilution in equity have crushed the shares of the company.
Great Basin Scientific Inc (NASDAQ:GBSN) reverse splits
To maintain listing, in the face of a share price spiraling below $1, the company has resorted to three reverse splits over the past year.
The reason for the dilutions in equity is the string of losses that the company has suffered.
Over the last three quarters it lost $18.94 million, $33.65 million and $20.28 million respectively.
These massive net losses were generated on corresponding revenues of just $0.61 million, $0.73 million and $0.73 million respectively.
The current market capitalization of the company is a mere $0.20 million.
Great Basin Scientific Inc (NASDAQ:GBSN) launches its Staph ID/R Blood Culture Panel
Last month Great Basin launched its Staph ID/R Blood Culture Panel, the Company’s first multiplex panel.
“This sample-to-result, automated panel benefits hospitals and laboratories by detecting, in about two hours, bloodstream infections caused by MRSA and other Staphylococcus species, enabling accurate, timely, and cost-effective diagnosis and treatment of patients,” the company claimed.
However, the company estimates that this new product will contribute meaningfully to revenue only in the beginning of the second half of 2017, as customers will require a long evaluation period.
The company will release its earnings report for Q3 2016 on November 14, 2016.