Replies to post #10959 on Great Basin Scientific Inc. (fka GBSNQ)

[Jiminy Cricket]

It's not, pay no attention to the BS

It's good news

GBSN$

[naturalborninvestor]

a warrant gives the holder the right to purchase stock at a specified (usually lower than market) price.

The modification is bad news because the company literally gives its warrant holders a 25-day period to exercise, i.e. convert, all their warrants to common shares as soon as they have increased the authorized shares.

The modifciation is good news, because any warrants still remaining after that 25 day period will be canceled.

In short: a lot of warrants will be converted and sold in a short period of time.

The amendments to the Series C Warrants provide in material part that once the current Authorized Share Failure (as defined in the Series C Warrants) is cured through either the implementation of a reverse stock split of the Company’s common stock or an increase in the number of authorized shares of common stock, in each case through the filing of an amended Certificate of Incorporation with the Delaware Secretary of State following shareholder approval, the Series C Warrants will then be exercisable for only 25 more trading days.

Upon the expiration of the 25 trading-day period, any remaining issued and outstanding Series C Warrants will be automatically deemed exercised based on the cashless exercise formula as currently contained in the Series C Warrants.