Great Basin Scientific Inc. (fka GBSNQ)

[Global Interface]

You are correct. A warrant gives the holder the option to BUY at the exercise price and the warrants are not "paid for already", technically.

Here's the kicker...

There are two ways to do a cashless conversion.

1. You do the conversion and the exercise prices is deducted from the proceeds of the sale.

2. You do the conversion based on a formula, and no proceeds go to the company. You just get fewer shares if the formula dictates that you are "in the money"

Unfortunately GBSN's "formula" has a "technical inefficiency" granting the C holders astronomical amounts of free shares at these low prices.

It is a major negligent oversight if not criminal and I'm having a hard time believing they didn't see it coming.

Anyway...

GLTA

G