Great Basin Scientific Inc. (fka GBSNQ)

[pberger]

Given the unfortunate experience we have on this board about the very toxic potential of some warrants offerings and given the absence of responsiveness of the VSCP board, I'm addressing the question here too.

As you may have noticed, shares price of VirtualScopics, VSCP, an instrumentation biotech company whom size and business model is not far from GBSN, just exploded yesterday 150% on a staggering almost 13M volume, representing 1300x the usual daily volume or more than 6x the declared float. That was triggered by positive (but not mind boggling) news, see e.g. http://www.prnewswire.com/news-releases/virtualscopics-inc-reports-2015-third-quarter-revenues-increase-18-from-prior-year-period-and-company-achieves-positive-adjusted-ebitda-300168431.html

Instead of a marginal profitable scalping in the afternoon, I've been trapped to hold this over the weekend failing to sell when the stock retraced before close. Then I just saw this today

ROCHESTER, N.Y., Sept. 17 /PRNewswire/ -- VirtualScopics, Inc. (Nasdaq:
VSCP) today announced that it has completed a private placement of
$4,350,000 of Series B Convertible Preferred Stock and Warrants with a
group of institutional and other accredited investors. VirtualScopics
currently intends to use the net proceeds from the offering to expand its
sales and marketing efforts, software and technology enhancements and
ongoing operations.
"We are pleased with the closing of this transaction," said Jeff
Markin, president and chief executive officer of VirtualScopics, Inc.
"Completing this offering will strengthen our balance sheet, expand our
shareholder base and enable us to increase our sales and marketing
efforts."
The Series B Preferred Stock is initially convertible into 3,612,057
shares of the Company's common stock at an initial conversion price of
$1.2043 per share, based on the volume weighted average of recent market
prices. The Series B Preferred Stock carries a dividend of 8%, payable
monthly in either cash or in shares of the Company's common stock. The
Company also issued to the investors Warrants to purchase an aggregate of
2,167,234 shares of common stock, half of which have an initial exercise
price at the conversion price per share and half at a 15% premium.
BridgePointe Master Fund Ltd. (managed by Roswell Capital Partners)
acted as the lead investor and BayStar Capital III Investment Fund, L.P.
also participated. The sole placement agent on this transaction was
Canaccord Adams, Inc.
The securities offered in this placement have not been registered under
the Securities Act of 1933, as amended, or state securities laws, and
cannot be offered or sold in the United States absent registration with the
Securities and Exchange Commission or an applicable exemption from the
registration requirements. As part of the transaction, the Company has
agreed to file a registration statement with the SEC covering the resale of
the shares of common stock to be issued in the offering, including the
shares of common stock issuable upon exercise of the warrants. This news
release is neither an offer to sell nor a solicitation of an offer to buy
any of the securities discussed herein and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation
or sale is unlawful. This press release is being issued pursuant to and in
accordance with Rule 135c under the Securities Act.

Sounds familiar, no?

Obvious question is when those warrants will start to be exercised? It looks that they cannot for now(?) even if it amounts of a mind boggling $3.5 profit per share sold (After market price is $4.7)

Of course, it was totally foolish to keep this stock over the weekend, originally I thought VSCP might hold its gains, like e.g. AQXP when it soared a few months ago, but with those warrants I very doubt it now.

What's bugging me is how it is even possible to have 1300x the average volume or 6x the float volume in the same day without anybody commenting about such an extraordinary trading volume?

Your comments and advices are very welcome here.