Dear TTOO Stock Fans, Mark Your Calendars for Sept. 12

Source: AnaLysiSStudiO /

Shares of T2 Biosystems (NASDAQ:TTOO) stock are currently trading below $1. However, the company’s upcoming annual meeting of stockholders seeks to resolve this. Shareholders will be eligible to vote on a total of nine proposals by Sept. 11 at 11:59 p.m. Eastern.

Specifically, proposal no. 1 seeks approval for a reverse stock split in a ratio between 1-for-50 and 1-for-150. If approved, T2’s board will choose the reverse split ratio. The board will also have the power to abandon the reverse split if it chooses to. Still, abandoning the reverse split does not seem like an ideal decision, as T2 is currently in noncompliance with Nasdaq’s minimum price requirement of $1. The diagnostics company has until Nov. 20 for its shares to close at or above $1 for at least 10 consecutive business days, but generally no more than 20 consecutive business days.

TTOO Stock’s Upcoming Annual Meeting of Stockholders

The number of days that Nasdaq will require TTOO stock to close at or above $1 is based on several factors. These include TTOO’s trading volume, price trend, how much it trades above $1 if it does, and the number and size of market makers quoting the stock at or above $1.

Moving on, proposal no. 2 seeks to elect Jack Cumming and David Elsbree as Class III directors until 2026. Proposals no. 3 through no. 5 involve approval for the compensation of the named executive officers, the 2014 Incentive Award Plan, and the 2014 Employee Stock Purchase Plan (ESPP).

Furthermore, proposal no. 5 seeks approval for the CRG debt-to-equity conversion. In July, T2 announced that it had converted roughly 20% of its term loan with CRG entities into TTOO common and Series B convertible preferred stock. The principal amount of the loan was reduced by 10% in exchange for 48.34 million TTOO shares and Series B convertible preferred stock convertible into 93.29 million shares of TTOO. The loan has a maturity date of Dec. 30, 2024.

Next, proposal no. 7 seeks to ratify BDO USA as T2’s independent registered public accounting firm. Finally, proposals no. 8 and no. 9 can be viewed as formalities. They involve adjourning the meeting if the reverse split proposal is not approved and to transact business as usual.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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