Great Basin Scientific (GBSN) Stock Soars on Top Line Results for Q1, Faces NASDAQ Delisting

Shares of micro-cap Great Basing Scientific, Inc. (GBSN) were trading up +1.71 or +62.64 percent to $4.44 per share in Friday’s premarket after the company announced first quarter revenues and customer acquisition results late yesterday after the market close. In addition, the company received a Staff Determination Letter from the Nasdaq Stock Exchange on April 13th saying that the company’s stock faces delisting if the company does not regain compliance.

Great Basin Scientific stock closed at $2.73 per share, down -0.40 or -12.78 percent in Thursday’s regular trading session.

Stock Analysis

Salt Lake City based Great Basin Scientific Inc. was formerly known as Diagnostic Micro Arrays, Inc and changed its name in 2006. Great Basin is a molecular diagnostic testing company that develops and commercializes molecular diagnostic systems for the detection of hospital acquired infections. The company’s diagnostic platform provides a test for bacteria that causes severe diarrhea and intestinal disorders, as well as a test for streptococcus. Great Basin has a number of assays in clinical trials for the detection of a number of other ailments. The company sells its diagnostic tests in the United States, the European Union and New Zealand.

Late yesterday, Great Basin announced preliminary revenue results for the company’s first quarter of 2016. The company reported revenue of $731,422, an increase of +59.4 percent over the same period one year ago. In addition, Great Basin reported that its customer base of revenue generating customers had increased to 222 as of March 31st of 2016, an increase of 119.8 percent over the last year’s first quarter.

In the company’s press release, Ryan Ashton, Co-founder and Chief Executive Officer of Great Basin said that, “We are extremely pleased with the Company’s execution over the last 12 months, including our ability to significantly grow our customer base, develop and launch new tests, and the accelerating growth in our revenues. We’re committed to building on this momentum in 2016, by advancing the development of new molecular tests and panels that will differentiate our platform and increase potential revenue per customer.”

In related news, Great Basin announced that as expected, it had received a Staff Determination Letter on April 13th from the Nasdaq Stock Market. The letter stated that the company had not yet regained compliance and that its stock would be subject to delisting unless it requests a hearing before the Nasdaq Listing Qualifications Pane by April 20th, 2016.

Great Basin intends to file its request on that day and expects the hearing to take place sometime in mid to late May, with the decision from the panel within 30 days of the hearing. The company’s stock will continue trading under its current symbol pending the hearing date and any extension granted by the panel. The panel has the discretion to grant the company an extension for 180 days from the issuance of the Letter but there is no assurance that the panel will grant Great Basin the extension.

Jeff Rona, Chief Financial Officer of Great Basin Scientific noted in a separate press release that, “We have two possible ways to return to compliance, the first would be have our Market Capitalization rise above $35 million for 10 consecutive business days. The other would be to achieve positive stockholders’ equity of $2.5 million. We intend to pursue both paths over the coming six months and we remain optimistic the Panel will grant us the added time needed to execute our plan and come into continued listing compliance.”

Shareholders and the market are optimistic with the company’s results, trading the stock up as much as +75 percent in this morning’s premarket.

Other News About GBSN

Great Basin Announces Exchange of Series E Warrants

Company will exchange 1.68 million Warrants for about 651,000 of common stock.

Great Basin Announces Expansion of Executive Leadership

Company has added medical tech sales professional Mike Blitz as VP of sales.

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Published on Apr 15, 2016
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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