Great Basin Scientific today announced that it has signed a $20.5 million securities purchase agreement with institutional investors, which will provide the company with new funding for its ongoing operations.

Under the terms of the deal, the Salt Lake City-based molecular diagnostics firm will issue to the investors $22.1 million of senior convertible notes, as well as related common stock purchase warrants, equal to 16.6 percent of its issued and outstanding common stock, for gross aggregate proceeds of $18.4 million.

Each warrant will become exercisable six months after issuance and allow the holder to acquire one additional share of common stock at a price equal to 120 percent of the market price per share on the date of closing.Great Basin said the funds will be used for product pipeline development and customer growth.