GREAT BASIN SCIENTIFIC, INC. (NASDAQ:GBSN) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

GREAT BASIN SCIENTIFIC, INC. (NASDAQ:GBSN) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

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On August 16, 2017 the Company received from Hudson Bay Master Fund Ltd. (“Hudson Bay”) an Event of Default Redemption Notice (the “Notice”) which was provided to Section 4(b) of the 2017 Series A Senior Secured Convertible Notes (the “Notes”), dated April 17, 2017, in the original principal amount of $20.3 million. The Note issued to Hudson Bay is in the principal amount of $14.5 million.Hudson Bay has alleged in the Notice that the Company has admitted that it cannot pay its debts as they become due and that the alleged admission constitutes an Event of Default as set forth in Section 4(a)(vi)E of the Note.The Company and Hudson Bay have begun discussions for a forbearance of the default, however there can be no assurance the Company and Hudson Bay will be able to agree on terms of the forbearance.Unless an agreement for forbearance is reached with Hudson Bay, the Company is required to pay the full amount due under the Note issued to Hudson Bay, totaling $18.3 million, which includes principal, interest and the Event of Default Redemption Premium, within 3 business days from the Company’s receipt of the Notice.The Company does not have the funds to repay the Note, therefore, if forbearance is not granted, the Company may have to cease operations and the holders of the Notes may exercise their rights under that certain Security Agreement dated June 29, 2016.Aside from Hudson Bay there are five holders of the Notes, all of whom may exercise their rights to declare an Event of Default.If the remaining holders of the Notes were to declare an Event of Default and demand repayment to Section 4(b) of the Notes, the Company will owe an additional $7.3 million in principal, interest and the Event of Default Redemption Premium.


About GREAT BASIN SCIENTIFIC, INC. (NASDAQ:GBSN)

Great Basin Scientific, Inc. is a molecular diagnostic testing company. The Company is focused on the development and commercialization of its molecular diagnostic platform designed to test for infectious diseases, especially hospital-acquired infections. Its commercially available tests are clostridium difficile (C. diff) and Group B Strep. Its system includes an analyzer and a diagnostic cartridge. Each analyzer contains a module into, which individual test cartridges are placed. Its other diagnostic assays in the late stages of product development include a pre-surgical nasal screen for Staphylococcus aureus (SA), food borne pathogen panel, panel for candida blood infections, test for pertussis and a test for Chlamydia tracomatis (CT)/Neisseria gonorrhea (NG). The Company also has a pipeline of assays in an early stage of development, including respiratory testing and sepsis (blood infection) panels. It markets a platform of molecular testing in small to medium sized hospitals.

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