T2 Biosystems Faces Delisting from Nasdaq and Undertakes Restructuring Measures

T2 Biosystems, Inc. (NASDAQ:TTOO) received notification from the Nasdaq Stock Market (“Nasdaq”) on February 10, 2025, that plans were underway to delist the company’s common stock. This decision stems from Nasdaq’s intent to file a Form 25 with the Securities and Exchange Commission (SEC) to initiate the delisting process. Once the Form 25 is submitted, the delisting will take effect after 10 days. Following this, the deregistration of T2 Biosystems’ common stock under Section 12(b) of the Securities Exchange Act of 1934 will transpire in 90 days, or as determined by the SEC.

In response to these developments, T2 Biosystems commenced trading on the OTC Markets Group, Inc. on February 12, 2025. Additionally, the company announced a series of restructuring actions, including a reduction in its workforce, with substantial charges and cash expenditures expected to amount to approximately $1.0 million. These fiscal impacts are attributed to various costs such as employee wages, severance payments, benefits, vacation time payouts, and other termination-related expenses, anticipated to be realized by the end of the quarter ending March 31, 2025.

Amidst this restructuring, the Board of Directors also approved the termination, effective immediately, of key personnel including John Sperzel, President and CEO, John Sprague, CFO, and Michael Gibbs, Senior VP and General Counsel. However, these executives were promptly re-appointed to their previous positions post-termination and are set to operate under consulting agreements. The agreements outline hourly fees for their services, along with expense reimbursements and indemnification obligations as part of their officer roles within the company.

Moreover, the company decided to cancel the impending Special Meeting of Stockholders scheduled for March 3, 2025. The meeting was initially planned to approve a reverse stock split aimed at regaining compliance with the bid price requirement of Nasdaq Listing Rule 5550(a)(2). This decision to abandon the reverse stock split proposal was made following the Nasdaq Hearings Panel’s delisting determination in February.

As of February 14, 2025, T2 Biosystems officially signed off on the disclosures contained in this report, marking a significant juncture in the company’s strategic and operational restructuring moves.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read T2 Biosystems’s 8K filing here.

About T2 Biosystems

T2 Biosystems, Inc, an in vitro diagnostics company, develops and sells diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine.