T2 Biosystems (NASDAQ:TTOO) stock is in the green after the medical diagnostics company announced that it had received written notice from the Nasdaq Listing Qualifications Staff on Oct. 31 that it had regained compliance with Nasdaq’s minimum bid requirement of $1.
T2 had previously enacted a 1-for-100 reverse stock split that became effective as of Oct. 12 in order to lift TTOO stock above $1. This measure was approved at the company’s last annual meeting of stockholders on Sept. 15, 2023. Still, TTOO has fallen by over 60% since Oct. 12.
Nasdaq first notified T2 of its noncompliance with the minimum bid requirement on March 20. This occurred because TTOO had failed to close at or above $1 for 30 consecutive business days. T2 regained compliance on Oct. 26 after its shares closed at or above $1 for at least 10 consecutive trading days.
TTOO Stock: T2 Regains Compliance with Nasdaq Minimum Bid Requirement
Moving forward, T2 will be subject to a Mandatory Panel Monitor for one year. This means that if TTOO stock again fails to comply with the minimum price requirement during the next year, it will not be granted more time to regain compliance and will face delisting. That said, T2 will still be able to request a hearing with the Nasdaq Listing Qualifications Hearing Panel prior to being delisted. If the situation occurs, the hearing request should allow TTOO to remain listed while the Hearing Panel makes its decision.
T2 regaining Nasdaq compliance lifts a major overhang off of the company and its stock. This will allow the firm to focus on its key objectives, such as improving revenue growth and receiving U.S. Food and Drug Administration (FDA) approvals.
T2 reported its preliminary third-quarter earnings on Oct. 12, which led to a decline in shares. Revenue tallied in at just $1.5 million, reflecting a 60% year-over-year (YOY) fall. This was mainly attributed to a $1 million reduction in Biomedical Advanced Research and Development Authority (BARDA) revenue. Of the revenue, the company’s sepsis test panel brought in $1.1 million, down by 31% YOY. This figure was affected by a $380,000 backlog at the end of the quarter. As of Sept. 30, T2 had $24.3 million in cash and cash equivalents.
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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.
