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T2 Biosystems (NASDAQ:TTOO) stock is enjoying a strong day in the markets on news that it has received an extension to regain Nasdaq compliance, potentially allowing the company to potentially avoid delisting.
What’s up with TTOO stock today?
Well, on Monday, T2 announced that the Nasdaq has given the diagnostics company until Nov. 20 of this year to comply with the index’s $1 per share minimum bid price. By the November deadline, T2 will also need to attain a market capitalization of its listed securities of at least $35 million for 10 straight trading days. If you recall, T2 first received notice that it has failed to satisfy at least one Nasdaq listing requirement back in late March.
As it stands, TTOO is trading for just 16 cents per share. The Massachusetts-based company has been trading below $1 since February of this year. This is well below its once-upon-a-time peak of $1,160 per share, recorded back in 2014. As of July, T2 had a market cap of just $3.67 million.
According to T2, the company will potentially be forced to enact a reverse stock split as a means of artificially raising its share price to $1.
TTOO Stock Climbs on GSA Stake
Interestingly, this isn’t the only news out of T2 lately. Indeed, TTOO stock is up about 8% today, potentially on news that earlier in July, GSA Capital Partners, a London-based investment firm, purchased about 800,000 shares of the Biosystems company at about 12 cents per share.
This actually boosted GSA’s ownership of T2 to 4,559,059 shares, representing about 1.5% of the company’s total shares and about 0.05% of GSA’s portfolio.
T2 is best known for its vitro diagnostics tests it offers to hospitals and laboratories. Its primary product is a T2 Magnetic Resonance, capable of detecting certain molecular targets from a blood sample.
Despite the promising investment, T2 has clearly been a company under duress lately. At its March earnings report, the company announced a net loss of about $18 million, representing a negative net profit margin of 864.53%.
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On the date of publication, Shrey Dua 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.