Another day, another sale of T2 Biosystems (NASDAQ:TTOO) for 10% owner CR Group (CRG). Since Sept. 19, CRG, an investment firm focused on healthcare firms, has sold off millions of shares of TTOO stock.
CRG’s most recent sale occurred on Sept. 27 and 28. On Sept. 27, it sold off 5.98 million shares at an average per share price of 19 cents. The next day, it sold another 7.14 million shares at an average per share price of 16 cents. Following the two sales, CRG still owns 7.14 million shares of T2 and tens of millions of more shares issuable through the conversion of Series B convertible preferred stock.
Since Sept. 19, CRG has now sold a staggering 48.34 million shares of T2. The shares sold on Sept. 19 were sold at an average per share price of 37 cents, a significant markup to the current price of 21 cents.
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The timing of CRG’s first sale is interesting, as T2 announced on Sept. 19 that it had received U.S. Food and Drug Administration (FDA) 510(k) clearance for its T2Biothreat Panel. This clearance allows the company to begin marketing and selling its T2Biothreat Panel in the U.S. Perhaps CRG was using this positive catalyst as exit liquidity?
As of the second quarter, CRG was T2’s largest shareholder, with ownership of 72.50 million shares. This sum included 24.15 million shares issuable upon the conversion of Series B convertible preferred stock. After the recent sales, CRG is still likely the largest shareholder of TTOO.
Back in July, T2 announced that CRG had converted 20% of its term loan into equity. The conversion reduced the outstanding principal amount of the term loan by $10 million in exchange for 48.34 million shares of TTOO and Series B convertible preferred stock convertible into 93.29 million shares of common stock. The 48.34 million share figure is notable, as that is the exact amount of shares that CRG has sold since Sept. 19.
“Equitizing a portion of the term loan strengthens our balance sheet and provides additional optionality to capitalize the business to achieve our growth and development initiatives,” said T2 chairman and CEO John Sperzel at the time.
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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.
