On Sept. 12, T2 Biosystems (NASDAQ:TTOO) will hold its annual meeting of stockholders. Up for vote are a total of nine proposals, which include a reverse stock split in a range between 1-for-50 and 1-for-150. If approved, the final reverse split ratio will be chosen by T2’s board of directors. TTOO stockholders will have until Sept. 11 at 11:59 p.m. Eastern to cast their votes.
Shares of TTOO are currently trading below $1, which is in violation of Nasdaq’s minimum price requirement of $1. To regain compliance, TTOO must close above $1 for at least 10 consecutive business days. Generally, shares are not required to trade above this level for more than 20 consecutive business days. A reverse stock split would help the company regain the $1 threshold, as it would consolidate shares, increasing the stock price in the process.
TTOO Stock: T2 Proposes Reverse Stock Split
Earlier this month, the company regained compliance with Nasdaq’s market value of listed securities (MVLS) requirement. T2 was previously in noncompliance because its MVLS fell below $35 million for 30 consecutive business days. As of Aug. 7, T2’s MVLS had traded for at least $35 million for 10 consecutive business days, satisfying Nasdaq’s requirement.
Another proposal to watch during the upcoming meeting will be proposal two. The proposal seeks approval for the election of Jack Cumming and David Elsbree as Class III directors until at least 2026. Other proposals relate to executive officer compensation, the 2014 employee stock purchase plan, the ratification of BDO as T2’s independent registered public accounting firm, and the approval of the CRG debt to equity conversion.
Meanwhile, the company recently reported its second-quarter earnings. Revenue tallied in at just $1.96 million compared to $5.91 million a year ago, showing a significant decline of 66.8%. This was primarily due to a slowdown in product revenue and $0 in contribution revenue compared to $3.35 million year-over-year (YOY). Contribution revenue totaled $0.4 million for the six months ended June 30, amounting to a YOY decrease of $6.3 million “due to timing of the contract activity and less option amount available under Option 3, which was available for the first quarter of 2023, compared to Option 2A, which was available for the first quarter of 2022.”
Still, T2’s net loss shrunk to $6.34 million compared to $18.03 million a year ago. This was due to lower shipping, service and repair costs, and lower consumable sales of T2SARS-CoV-2.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
