According to MarketWatch, Great Basin Scientific is a biotechnology company that “develops and manufactures test kits and analyzers for a patented molecular diagnostic system used in single pathogen tests.” It trades on the NASDAQ exchange under GBSN.
Great Basin Scientific Inc - GBSN Stock Chart Technical Analysis for 03-11-16
David Spafford is Executive Chairman; Ryan Ashton is President and Chief Executive Officer; Jeffrey Rona is Chief Financial Officer; Robert Jenison is Chief Technology Officer; Laurence Rea is Vice President of Engineering. Great Basin Scientific was founded in 2003 and is headquartered in Salt Lake City, Utah.
In February 2015 GBSN raised a follow-on offering of almost $24 million, consisting roughly 2.72 million units at $8.80/unit.
The offering was underwritten by Dawson James Securities, a Boca Raton, Florida-based brokerage that has been sanctioned and fined on multiple occasions by the Financial Industry Regulatory Authority (FINRA).
The offering led some to speculate whether Great Basin Scientific is “just another pump and dump” scheme.
According to Seeking Alpha, “GBSN’s IPO underwriter, Dawson James Securities, Inc., raises numerous red flags due to its murky history and involvement in other suspect stocks… like all biotechs, there is risk of the stock running on little or no fundamental news, but we believe GBSN will probably head lower from here.”
In an email to premium members, Seeking Alpha noted concerns about Dawson James Securities’ “past regulatory infractions and its association with one of its previous brokers, arrested in connection with his participation in a ‘nationwide Ponzi Scheme.’” The writer additionally commented that Dawson James “has had investment banking relationships with other stocks we consider to be pump and dump schemes, as well as with a high profile Chinese company accused of fraud whose registration was revoked by the SEC.”
A pump and dump scheme, for reference, is a scheme that seeks to raise the price of a stock through the use of recommendations based on flawed or exaggerated information.
The perpetrators of pump and dump schemes generally seek to sell their own positions after they have generated sufficient buzz to create higher share prices.
Federal securities law forbids pump and dump schemes.
If you or someone you know has a complaint regarding Great Basin Scientific (GBSN), Dawson James Securities, or any other investment firm that offered GBSN, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation.
You may be eligible to recover your losses. Fitapelli Kurta accepts every case on contingency fee basis, meaning we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay.
Call 877-238-4175 now to speak to an attorney for free.