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T2 Biosystems to Raise $8M in Private Placement

NEW YORK – T2 Biosystems said Wednesday that it has inked deals with an undisclosed group of investors for the purchase and sale of $8 million of shares and warrants.

Under the terms of the private placement, the Lexington, Massachusetts-based firm will sell a combination of 2,025,317 ordinary shares — or pre-funded warrants in lieu of the shares — series A warrants for up to 2,025,317 ordinary shares, and short-term series B warrants to purchase up to 2,025,317 ordinary shares at a price of $3.95 per share, or pre-funded warrant in lieu of the shares. The series A warrants expire in five and a half years and the series B warrants expire in 18 months. Both can be exercised upon issuance at a price of $3.70 per share.

The private placement is expected to close on May 17. H.C. Wainwright is the exclusive placement agent for the offering.

T2 Biosystems said that it plans to use the $8 million in gross proceeds from the private placement for working capital, sales, marketing, manufacturing, clinical development, and other general corporate purposes.

The firm received a warning letter from the Nasdaq in November of possible delisting from the exchange for failing to meet Nasdaq's requirement for maintaining a closing market value of at least $35 million for 10 consecutive business days. In March, T2 Biosystems received an extension from the Nasdaq Hearings Panel to regain compliance. The firm has since said it plans to soon launch a Lyme disease panel as a laboratory-developed test, signed a Middle East distribution deal, and reported year-over-year sales growth in its sepsis product sales.