Great Basin Scientific Inc (NASDAQ:GBSN) a molecular diagnostics firm reported that its shares will commence trading on the OTCQB marketplace effective October 11, 2016. The ticker will continue to remain GBSN.
The details
As previously reported, a Nasdaq Hearings Panel had approved Great Basin an extension of time to validate compliance with the market value of listed equities prerequisite for continued listing on NASDAQ. However, the firm failed to achieve compliance by the specified date. Therefore, NASDAQ advised the firm that trading in its shares would be suspended.
Considering the existing conditions, the company’s previously submitted application with OTC Markets to have its common stock listed on the OTCQB marketplace, was subsequently approved. Great Basin will continue to submit all required reports with the SEC depending on the requirements of the SEC 1934, as amended.
The concerns
Great Basin has several red flags surrounding its operations, and for now there is no possibility of company clearing all this issues anytime soon. In a period of less than one year, the company has completed 3 reverse stock splits, and then too has failed to comply with NASDAQ compliance notifications. The company closed its first reverse split in December 2015 at a rate of 1:60, This deal came almost a year after its Initial Public Offering.
In March 2016, the firm initiated another reverse split at 1:35 ratio. This phenomenon continued as after 6 months, the third reverse split was closed at a rate of 1:80. It was during this period, the stock’s short interest jumped from to over 4.2 million shares from nearly 100,000 shares.
The underlying complications are a result of faulty business model. The company took indications from the razor and printer operations in establishing its model. Great Basin gives equipment to clinics and hospitals for free, yet, it levies charges for checking constituents.
Great Basin has viable items that are FDA sanctioned, but as of now these are available just in the U.S. and Europe. There is no broad conversation on the quality of the goods, but the outlays to produce the assays are far away from breakeven point.
