Under the terms of the agreements, the number of Common Shares issuable per Series B Warrant with respect to Net Cashless Exercises prior to the close of business on November 17, 2015 may not exceed 33.
announced today that it has entered into definitive agreements with the holders (the "Consenting Holders") of approximately 90% of its outstanding Series B Common Share Purchase Warrants (the "Series B Warrants") that are intended to reduce the dilutive effect of the exercise of the Series B Warrants by establishing a cap on the number of shares issuable upon alternate net cashless exercise ("Net Cashless Exercise") of the Series B Warrants until the close of business on November 17, 2015 and by limiting the number of shares that the Consenting Holders may sell until the close of business on October 9, 2015.
Great Basin Scientific (NasdaqCM:GBSN) said on Thursday that it intends to settle certain cashless exercises of its Series C warrants under the terms of the Series C warrants.
The company added that it has authorised its management at its discretion to settle certain cashless exercises of its Series C warrants using cash rather than shares under the terms of the Series C warrants.
For example, the Act may be interpreted to prohibit cashless exercises
of stock options, in which the payment to the company of the option exercise price, including any withholding tax, is deferred until a few days after exercise when funds become available from a simultaneous sale of the exercised shares.