Might want to hold: Series F Preferred stockholders and holders of related warrants to purchase common stock in a three-stage restructuring of its outstanding convertible securities, eliminating noteholder controlled variable-rate conversions and providing immediate access to $800,000 in cash and available access to $10.8 million in additional capital through new Senior Secured Series B Convertible Notes (the “Series B Notes”) with a mandatory conversion feature.
We believe the restructuring will have the following benefits:
Immediate access to $800,000 of previously restricted cash, which is now available for operations;Access to an additional $10.8 million in capital through mandatory conversions of the new Series B Notes, at the Company’s sole option (with the availability subject to the continued satisfaction of certain equity conditions);Eliminates all noteholder controlled variable-rate convertible securities;Simplifies our capital structure;Reduces our derivative liabilities, strengthening our balance sheet;Prohibits us from entering into any future variable-rate transactions.
“We are very pleased with this revised capital structure and appreciate the support of our noteholders and preferred stockholders. This restructuring, once completed, will eliminate noteholder controlled variable-rate conversions and provide access to capital to strengthen Great Basin’s balance sheet so that the company can continue to execute on its business plan to grow revenue, its customer base and product offering,” said Jeff Rona, chief financial officer of Great Basin Scientific.