Why Is T2 Biosystems (TTOO) Stock Down 23% Today?


  • T2 Biosystems (TTOO) stock is dropping on public offering news.
  • The company revealed more details about its public offering.
  • That includes the number of shares being sold and the price.
T2 Biosystems (TTOO Stock) makes test kits for detecting sepsis.

Source: AnaLysiSStudiO / Shutterstock.com

T2 Biosystems (NASDAQ:TTOO) stock continues to drop on Wednesday as investors react to news of a public stock offering.

The big news today is the company announcing additional details of its public offering. The company intends to sell 11.11 million shares with warrants to purchase an additional 22.22 million shares of TTOO stock.

T2 Biosystems is pricing these units at $1.08 per share. The warrants also have the same exercise price. They are exercisable immediately and expire five years after being issued. T2 expects gross proceeds of about $12 million from the public stock offering.

What This Means for TTOO Stock

With this public offering, T2 Biosystems is increasing its total number of outstanding shares. This will dilute current shareholders’ stakes in the company, which helps explain why the stock is falling today.

To go along with that, the offering price of $1.08 per share matches TTOO stock’s prior closing price. However, the company’s stock dropped 22.9% on Tuesday after it announced the proposed public offering. Prior to that, shares closed out trading on Monday at $1.40 per share.

When a company prices shares below their market value, that often drops the price of the stock. While this offering price does match market value, it’s still unsurprising that investors are dropping TTOO stock today.

TTOO stock is down 23.1% as of Wednesday morning.

Investors looking for more of the latest stock market news are in luck!

We’ve got all of the hottest stock news traders need to know about on Wednesday! A few examples include why shares of Credo Technology (NASDAQ:CRDO), Tenon Medical (NASDAQ:TNON) and TransCode Therapeutics (NASDAQ:RNAZ) stock are on the move today. You can read up on all that news at the following links!

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On the date of publication, William White 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.

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