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T2 Biosystems Receives Nasdaq Warning Letter

NEW YORK – T2 Biosystems disclosed in a filing with the Securities and Exchange Commission on Wednesday it received a warning letter from the Nasdaq Stock Market because its stock price has been below $1 for at least 30 consecutive business days.

As a result, the company could face delisting action by Nasdaq. T2 Bio has until Oct. 5 to avoid delisting, and the firm said it will monitor the bid price of its common stock and consider potential options, including performing a reverse stock split.

The Lexington, Massachusetts-based firm also disclosed in SEC documents on Wednesday that it has terminated a master definitive agreement with Lincoln Park Capital Fund and amended an equity distribution agreement with investment bank Canaccord Genuity.

T2 Bio said that under a July 2019 Lincoln Park Capital Fund purchase agreement, T2 Bio sold a total of 400,000 shares for net proceeds of about $318,400.

T2 Bio also amended its equity distribution agreement with Canaccord Genuity, which it had signed in July 2019. As part of the amendment, the total amount in securities the firm may offer from time to time was increased to $95 million from a previous amount of $65 million. As of April 8, T2 Bio had sold 73.2 million shares with an aggregate offering price of about $48.1 million, leaving an aggregate offering price of up to $46.9 million remaining under the supplement.

According to the SEC filing, T2 will use the net proceeds for working capital and general corporate purposes, which may include funding commercialization efforts and R&D activities.

During morning trading on the Nasdaq, shares of T2 Bio were down at about 2 percent at $.50.