T2 Biosystems Announces Restructuring of CRG Term Loan Agreement
September 10 2019 - 4:14PM
T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the development of
innovative diagnostic products for critical unmet needs in
healthcare, announced today that it has restructured its Term Loan
Agreement with CRG Servicing LLC (“CRG”).
The key updates of the restructured CRG agreement include:
- Extending the interest-only payment period by one year so that
principal payments will commence beginning in March 2022 instead of
March 2021.
- Reducing the minimum revenue targets for 2020 – 2022 to levels
that are below the Company’s current financial forecast. For any
shortfall to achieving the minimum revenue targets, the Company has
the right to pay double the amount of any shortfall as an
acceleration of principal payments (unchanged from existing
structure).
“We continue to be excited by the potential of T2 Biosystems’
direct-from-blood diagnostic technology for the prevention of
sepsis and antibacterial resistance, along with future applications
under development,” said Luke Düster, partner of CRG. “We are
pleased to extend our partnership and financial support of the
Company as they continue to drive increased adoption and
utilization of T2Bacteria and we are encouraged by the Company’s
progress, including recent developments supporting commercial
momentum and pipeline expansion.”
“The restructuring of our term loan agreement with CRG is an
important financial update that provides increased balance sheet
flexibility and supports our ability to execute on our growth
strategy,” said John McDonough, chairman and chief executive
officer at T2 Biosystems. “We believe the updated agreement
provides sufficient runway to continue driving adoption of
T2Bacteria and T2Candida in the near-term, while also executing on
our development pipeline to further expand our market opportunity.
We are pleased with ongoing support from CRG and for their
collaborative partnership.”
In connection with the restructuring of the Term Loan Agreement,
the Company issued to CRG additional warrants to purchase a total
of 568,291 shares of the Company’s common stock. The warrants are
exercisable any time prior to September 9, 2029 at a price of $1.55
per share. The Company also reduced the exercise price of the
warrants previously issued to CRG to purchase an aggregate of
528,958 shares of common stock to $1.55 at any time prior to
December 30, 2026.
About T2 Biosystems T2 Biosystems, a
leader in the development and commercialization of innovative
medical diagnostic products for critical unmet needs in healthcare,
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,
T2Candida® Panel, and T2Bacteria® Panel, which was recently
announced as the first and only in-vitro diagnostic test to receive
approval for a New Technology Add-on Payment (NTAP) by CMS, are
powered by the proprietary T2 Magnetic Resonance (T2MR®)
technology. T2 Biosystems has an active pipeline of
future products, including products for the detection of additional
species and antibiotic resistance markers of sepsis pathogens, and
tests for Lyme disease.
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 regarding additional
patients, timing of testing patients, anticipated product benefits,
strategic priorities, product expansion or opportunities, growth
expectations or targets, timing of FDA filings or clearances and
anticipated operating expenses, as well as statements that include
the words “expect,” “intend,” “plan”, “believe”, “project”,
“forecast”, “estimate,” “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) 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, 2018, filed with the U.S.
Securities and Exchange Commission, or SEC, on March 14, 2019, and
other filings the company makes with the SEC from time to
time. 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.
Media Contact: Gina Kent, Vault
Communications gkent@vaultcommunications.com
610-455-2763
Investor Contact: Zack Kubow, W2O Group
zkubow@w2ogroup.com 415-658-6436
T2 Biosystems (NASDAQ:TTOO)
Historical Stock Chart
From Mar 2024 to Apr 2024
T2 Biosystems (NASDAQ:TTOO)
Historical Stock Chart
From Apr 2023 to Apr 2024