Last Thursday, April 13, 2017, we published our findings on why we are very bearish on Great Basin Scientific (OTC:GBSN) (GBSND), a company that describes itself as a molecular diagnostics company. We commented on what we perceive as a series of bad financings for common stockholders, and why we think the company will once more see its stock price decline close to $0. The stock recently closed down 29% to $0.87. We also stated that if you are short Great Basin Scientific, you might want to know that the stock has a history of quick pumps before imploding.
On the morning of April 17, 2017, GBSN issued a release rehashing details from an April 10, 2017 release about the restructuring of its 2016 convertible notes and Series F preferred stock. The stock pumped 124% in early trading to reach $2.24 and closed at $1.83. In our opinion, the important conclusions to be drawn from details in the 8K related to yesterday’s release are essentially no different than the what should have been drawn from the April 10 release that sent shares to temporarily hit a high of $1.80 before dumping to $0.87 a day later.
In our opinion, GBSN is walking a fine line by omitting and dancing around facts presented in press releases issued through wire services. We strongly urge regulators to take note that we feel that management’s portrayal of the convertible note deal has been posed in a manner so as not to reveal important facts outlined in the related 8K.
Where is Great Basin Scientific Headed?
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