T2 Biosystems Announces the Conversion of an Additional $15 Million of CRG Term Loan into Equity

Rhea-AI Summary

T2 Biosystems announced the conversion of $15 million of its term loan into equity, reducing total debt by 80% over the past year. The company exchanged debt for shares, strengthening its balance sheet. This move provides financial flexibility for advancing commercial and development priorities.

Positive

• Reduction of total debt by approximately 80% over the past year.

• Strengthening of the balance sheet by converting debt into equity.

• Decrease in quarterly interest payments due to debt conversion.

• Enhanced financial position allowing flexibility for commercial and development initiatives.

Negative

• None.

Strengthens balance sheet by reducing total debt by approximately 80% over the past year

Filed Pursuant to Rule 433
Issuer Free Writing Prospectus dated May 6, 2024
Relating to Preliminary Prospectus dated May 6, 2024
Registration No. 333-278866

LEXINGTON, Mass., May 06, 2024 (GLOBE NEWSWIRE) -- T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, today announced the conversion of an additional $15 million of its term loan with entities affiliated with CRG Servicing LLC (“CRG”) into T2 Biosystems equity. Following this conversion, the company has reduced its total debt and quarterly interest payments by approximately 80% percent over the past year.

This conversion follows cancellation of $15 million of the CRG Term Loan Agreement in exchange for 3,280,618 shares of common stock and 17,160.48 shares of Series A Convertible Preferred Stock on April 12, 2024.

“Through the conversion of debt to equity, we have improved our balance sheet materially over the past 12 months,” stated John Sperzel, Chairman and CEO at T2 Biosystems. “Strengthening the financial position of the Company provides flexibility to advance our commercial and development priorities across three distinct, large, and underserved market opportunities.”

About T2 Biosystems
T2 Biosystems, a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, is dedicated to improving patient care and reducing the cost of care by helping clinicians effectively treat patients faster than ever before. T2 Biosystems’ products include the T2Dx^® Instrument, the T2Bacteria^® Panel, the T2Candida^® Panel, the T2Resistance^® Panel, and the T2Biothreat™ Panel, and are powered by the proprietary T2 Magnetic Resonance (T2MR^®) technology. T2 Biosystems has an active pipeline of future products, including the U.S. T2Resistance Panel, the Candida auris test, and the T2Lyme™ Panel. For more information, please visit www.t2biosystems.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about the financial position of the Company and its flexibility to advance its commercial and development priorities, as well as statements that include the words “expect,” “may,” “should,” “anticipate,” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, (i) any inability to (a) realize anticipated benefits from commitments, contracts or products; (b) successfully execute strategic priorities; (c) bring products to market; (d) expand product usage or adoption; (e) obtain customer testimonials; (f) accurately predict growth assumptions; (g) realize anticipated revenues; (h) incur expected levels of operating expenses; or (i) continue as a going concern; or (i) increase the number of high-risk patients at customer facilities; (ii) failure of early data to predict eventual outcomes; (iii) failure to make or obtain anticipated FDA filings or clearances within expected time frames or at all; or (iv) the factors discussed under Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission, or SEC, on April 1, 2024, and other filings the Company makes with the SEC from time to time, including our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the Company may elect to update such forward-looking statements at some point in the future, unless required by law, it disclaims any obligation to do so, even if subsequent events cause its views to change. Thus, no one should assume that the Company’s silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

Investor Contact:
Philip Trip Taylor, Gilmartin Group
ir@T2Biosystems.com
415-937-5406

T2 Biosystems, Inc. has filed a registration statement for a Form S-1 (including a preliminary prospectus) with the Securities and Exchange Commission, or the SEC, for the public offering. Before you invest, you should read the Preliminary Prospectus and the other documents T2 Biosystems, Inc. has filed with the SEC for more complete information about T2 Biosystems, Inc. and the public offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, T2 BioSystems, Inc., A.G.P. or any dealer participating in the public offering will arrange to send you the Preliminary Prospectus if you request it by contacting A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060.

 

FAQ

What did T2 Biosystems announce in the press release?

T2 Biosystems announced the conversion of $15 million of its term loan into equity.

How much has the company reduced its total debt by?

The company has reduced its total debt by approximately 80% over the past year.

Who stated the company has improved its balance sheet over the past 12 months?

John Sperzel, Chairman and CEO at T2 Biosystems, stated that the company has improved its balance sheet over the past 12 months.

What is the stock symbol for T2 Biosystems?

The stock symbol for T2 Biosystems is TTOO.

When was the debt conversion announced?

The debt conversion was announced on April 12, 2024.