Great Basin Scientific Inc (NASDAQ:GBSN) Hits The OTC

Here at Insider Financial, we've been watching Great Basin Scientific Inc (NASDAQ:GBSN) for a long time. We have seen the company rise and fall, and – over the last few quarters at least – collapse into what looked like an irretrievable position. However, alongside the collapse, we have maintained that the company's core technology and product offering has considerable value, and that the current share price (and in turn, market capitalization) is a result of serious mismanagement. In turn, we have suggested that to a potential buyer, the company is worth far more than it is in current hands, and far more than its current market capitalization suggests.The company just delisted to over-the-counter (OTC), reportedly choosing to jump from the NASDAQ as opposed to being pushed, but we all know the push was coming, and the question is, what's next? Is there any hope for shareholders at this stage, or is Great Basin Scientific a write-off?Before we have a go at answering, and for those not yet familiar with the company, let's quickly recap what's going on.Great Basin Scientific is a molecular diagnostic testing company with a primary focus on infectious disease. Specifically, hospital borne infections. It has a couple of already approved pieces of testing equipment, which test for clostridium difficile (C. diff) and Group B Strep, and just launched a multi culture panel designed to identify bloodstream infections caused by MRSA and other Staphylococcus species. It's got five or six more in development, a few of which are pretty late stage and – under the right management – shouldn't have too much of a development pathway left to traverse.Here's the thing. There's a great need for quick and accurate infectious disease tests in hospitals. When somebody gets a disease, current standard of care calls for what is essentially a blast of various different antibiotics aimed at concurrent treatment and identification of that particular infection. Throw everything at it, and hope something works. In the forty-eight or more hours it can take to identify certain bacteria under current SOC, patients die because they haven’t received the correct antibiotic, or they've been given an antibiotic to which the strain in question is resistant. Great Basin's tests bring time to identification down to an hour or so, and for this reason alone, it can save lives. It's also a great model for an entity that can manage it right – sell the analysis system, and then sell the individual disposable tests. Razor and blade, in a hospital setting, saving lives.Somehow, however, management has screwed things up, and shareholders now see the company as nothing more than an ATM for the C-suite. Reverse split, dilution, rinse, repeat.Yes, this opinion looks valid to some extent, but we want to reiterate that there is value in the company's technology, and we think it can only be a matter of time before the door is closed on current leadership and a fresh set of heads takes over. There's a chance this will be as part of the same structure, but we think the more likely scenario is a big name swooping up, scooping up the company for no other reason than to acquire its technology, and putting a fresh team in place to carry what is an essentially sound business model through to successful execution.We also think there's value in said big name taking action near term. If a company waits until Great Basin runs itself into the ground, it's probably going to have to spend more acquiring the technology as an asset, and the IP associated with it, as part of a bankruptcy sale, than it would have to to acquire Great Basin as a whole at its current price.Market cap at last count was a little over $135K. The company generated not too much shy of $1 million revenues during the last couple of quarters, and while it's spending too much on R&D, and equally too much to collect its revenues, we think a big pharma could dramatically reduce outgoings through integration into its current framework, and turn a profit on the technology going forward.As a very risky speculative allocation, there's something intriguing here. Buyout with a large premium attached, or bust. For current holders, the potential for a buyout – in our opinion – is a reason to hold fast and hope for the best.We've got our ears to the ground looking for any potential suitors, or buyout rumors. Subscribe to our newsletter below and we'll let you know as soon as our industry contacts uncover anything worthwhile!Disclosure: We have no position in GBSN and have not been compensated for this article.