It seems like T2 Biosystems (NASDAQ:TTOO) stock will live to see another day after regaining compliance with Nasdaq’s minimum market value of listed securities policy. Indeed, this morning, T2 published a note confirming that Nasdaq has given the company written notice that the market value of its listed securities is now acceptable.
What does this mean for T2?
Well, immediately, it means investors are clamoring over TTOO stock in the wake of the announcement. Shares of TTOO are up more than 10% today on the company’s optimistic press release.
If you recall, T2 was first notified by Nasdaq in November 2022 that it had failed to uphold the exchange’s $35 million minimum market value of listed securities for 30 consecutive trading days. T2 regained compliance on Aug. 7, its 10th-straight trading day with the market value of its listed securities over $35 million.
T2 is best known for its gene-analysis technology, capable of detecting sepsis-causing pathogens and antibiotic-resistance genes.
TTOO Stock Is Still Touch-and-Go Ahead of November Share Price Deadline
Despite the promising news, T2 isn’t quite of the woods just yet. In fact, the company still needs to regain compliance with Nasdaq’s minimum $1 bid price rule by Nov. 20, 2023. At the time of this writing, TTOO stock trades for just 35 cents per share — a far cry from $1. Some investors have speculated that T2 will inevitably be forced to initiate a reverse stock split. That is, lowering the company’s total share count by merging shares, and making the price per each share superficially higher.
That said, there’s plenty of time between now and Nov. 20, should T2 attempt to raise its share price the old-fashioned way.
As it stands, TTOO stock remains one of the big losers of this year’s bull market. TTOO is down nearly 80% year-to-date (YTD), even as the Nasdaq Composite eyes a 32% gain over the same period.
It remains to be seen whether today’s news represents the start of a comeback for this biotech company. Either way, fans of TTOO should be pleased with the rather optimistic news.
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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.
