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T2 Biosystems (NASDAQ:TTOO), Inc., a medical device company currently trading at $0.19 and down 96% over the past year according to InvestingPro data, announced that it will be delisted from the Nasdaq Stock Market LLC with trading of its common stock to be suspended starting Wednesday. The Nasdaq Hearings Panel determined the delisting after the company failed to meet the minimum bid price and market value of listed securities requirements, with the company’s market capitalization now standing at just $4.09 million.
The company, which specializes in surgical and medical instruments and has shown concerning financial metrics with a weak Financial Health Score of 1.38 according to InvestingPro, was previously notified of its non-compliance with Nasdaq’s Listing Rule 5550(a)(2), concerning the bid price, and Listing Rule 5550(b)(2), regarding the market value of listed securities. Despite the delisting, T2 Biosystems’ common stock is expected to begin trading on the OTC Markets system under the same trading symbol "TTOO" from the suspension date.
T2 Biosystems does not plan to appeal the delisting decision and anticipates that Nasdaq will file a Form 25-NSE with the SEC, which will formally remove the company’s common stock from listing and registration on Nasdaq. The company intends to apply for quotation of its common stock on the OTCQX, a higher tier of the OTC Markets, and will continue to fulfill its reporting obligations to the SEC.
The transition to the OTC Markets system is not guaranteed to provide an efficient trading market, and there is no assurance that the company’s stock will continue to trade on this market or that public quotes will be available.
This move comes with risks and uncertainties, including potential liquidity constraints and limited regulatory oversight associated with trading on the OTC Markets system. The company has cautioned that forward-looking statements related to the delisting and trading on the OTC Markets system are not guarantees of future performance, and actual results could differ materially. InvestingPro data reveals several red flags, including a concerning current ratio of 0.4, negative gross margins of -247.83%, and revenue decline of 30.19% over the last twelve months. For deeper insights into T2 Biosystems’ financial health and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The information in this article is based on a press release statement from T2 Biosystems.
In other recent news, T2 Biosystems has made several significant developments. The company has amended its loan terms, extending the maturity date from December 31, 2025, to March 31, 2026. This adjustment, known as the Twelfth Amendment, includes the waiver of certain events of default and an increase in the final payment fee from 10% to 14%.
In addition, T2 Biosystems has announced changes to its board and the approval of its incentive plan. Laura Adams, Robin Toft, and Seymour Liebman have been elected as Class I directors, while the amendment and restatement of the 2014 Incentive Award Plan have been approved by stockholders.
Further, the company has expanded its presence in Europe through the sale of four T2Dx Instruments to its European distributor. These instruments will be deployed in various hospitals across multiple European countries, marking a significant step in the company’s international commercial expansion.
T2 Biosystems has also extended its supplier agreement with Vizient, Inc. until March 31, 2026. This extension allows Vizient members continued access to T2 Biosystems’ technology for the rapid detection of sepsis-causing pathogens.
However, the company faces potential delisting from The Nasdaq Capital Market due to non-compliance with the exchange’s minimum bid price requirement. A hearing has been scheduled for January 9, 2025, to decide the company’s future listing status. These developments reflect the recent activities and strategic decisions of T2 Biosystems.
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