T2 Biosystems Announces Agreement With CRG For The Conversion Of $15M Of CRG Term Loan Into Equity
Portfolio Pulse from Benzinga Newsdesk
T2 Biosystems, Inc. (NASDAQ:TTOO) has entered into an agreement with CRG Servicing LLC to convert $15 million of its term loan into equity, pending stockholder approval. This conversion is part of T2 Biosystems' efforts to strengthen its balance sheet and support its business growth, including international distribution expansion and FDA submissions. The conversion will be into common stock or Convertible Preferred Stock, depending on ownership limits. This follows previous amendments to the loan agreement, including a $10 million conversion in July 2023 and an extension of the loan's maturity date in October 2023.
February 15, 2024 | 9:22 pm
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T2 Biosystems is converting $15M of debt into equity with CRG, aiming to strengthen its financial position and support growth initiatives.
The conversion of debt into equity will likely be viewed positively by investors as it reduces the company's debt burden and interest obligations, potentially leading to an improved financial position. This move, coupled with T2 Biosystems' focus on growth initiatives such as international distribution and FDA submissions, could lead to increased investor confidence and a positive short-term impact on the stock price.
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