Great Basin Scientific Inc. (fka GBSNQ)

[Euripides90]

So why'd you-just-recommend-buying-in-@.0007?OR at all? They couldn't file the June 30th 10-Q due to lack of funds and that's the least of its problems.

This just came out Friday:

There seems no way the company can pay $25M in debt within a few days:



Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.



On August 16, 2017 the Company received from Hudson Bay Master Fund Ltd. (“Hudson Bay”) an Event of Default Redemption Notice (the “Notice”) which was provided pursuant to Section 4(b) of the 2017 Series A Senior Secured Convertible Notes (the “Notes”), dated April 17, 2017, in the original principal amount of $20.3 million. The Note issued to Hudson Bay is in the principal amount of $14.5 million. Hudson Bay has alleged in the Notice that the Company has admitted that it cannot pay its debts as they become due and that the alleged admission constitutes an Event of Default as set forth in Section 4(a)(vi)E of the Note.

The Company and Hudson Bay have begun discussions for a forbearance of the default, however there can be no assurance the Company and Hudson Bay will be able to agree on terms of the forbearance. Unless an agreement for forbearance is reached with Hudson Bay, the Company is required to pay the full amount due under the Note issued to Hudson Bay, totaling $18.3 million, which includes principal, interest and the Event of Default Redemption Premium, within 3 business days from the Company’s receipt of the Notice.

The Company does not have the funds to repay the Note, therefore, if forbearance is not granted, the Company may have to cease operations and the holders of the Notes may exercise their rights under that certain Security Agreement dated June 29, 2016. Aside from Hudson Bay there are five holders of the Notes, all of whom may exercise their rights to declare an Event of Default. If the remaining holders of the Notes were to declare an Event of Default and demand repayment pursuant to Section 4(b) of the Notes, the Company will owe an additional $7.3 million in principal, interest and the Event of Default Redemption Premium.


https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12241742


From an earlier filing:

Temporary furlough

On August 10, 2017, the Company implemented a furlough of 57 employees. The furlough. encompasses employees throughout the Company including all manufacturing employees as well as Robert Jenison, Chief Technology Officer and Senior Vice President of Research. The furlough was designed as a cost cutting measure due to lack of funds. Because of the Company’s lack of funds, there is no guarantee that it will be able to offer the furloughed employees re-employment.

In other words, NOTHING is happening: no manufacturing, no research, nada.

If in fact Ashton and his in-house partner (using the nicer term) have continued to skim $1M or so or more together (their 2015 reported compensation according to one poster here), they may be sued for abusing fiduciary duty by any number of the above....

I've made some bucks flipping this but unless they reach an agreement with Hudson Bay there will be a domino effect that will surely put this turd out of business once and for all.

On the other hand if they do report some agreement -- not impossible if Hudson Bay and note holders decide it'w their only chance to recoup, by letting the co. resume production by cutting down the fat -- the risk takers may get at least one more bounce.
I'm not an insider so I wouldn't place bets on that.

I foresee a dump Monday morning once this news sinks in to more PPL:

then it may be a flip candidate at a penny...if you're the gambling kind.