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Maybe you should look at the listing requirements. Getting listed is tougher than staying listed and it takes more than the stock price being up to get listed. I believe they need to have 5 million in stockholders equity. From what I see they certainly don’t have that. So how do you expect they will get the stockholders equity and get Nasdaq listed before an offering when they need the offering to get the stockholders equity?
Oh. Thanks. Didn’t see that.
Am I missing something? Isn’t this filing just an amendment to the already completed offering to include year end 2017 financial results?
That is what really gets to me. Companies in phase 3 can generally get reasonable financing. But somehow not this team at Dcth. They do financings that seem to be worse than preclinical companies or companies just entering phase 1. It makes no sense that they couldn’t find more reasonable financings than the disastrous financings they do. If this is truly the best that was available even if we had a better management team it doesn’t say much about the product. I believe better management could have done better. Certainly Hobbs was able to raise money for the same product without this level of destruction so why would it be the product? Sure there was overspending back in those days and the fda rejection, but he could reasonably raise money. Not this team though.
Now that would really shake things up if someone got an injunction.
Oh please Sam. You support them with saying their motivation for that slimy reverse split was partially to increase shareholder value? Seriously? I’m not blaming them for my investment decisions. But I am calling them out for blatant bull like having the nerve to say increasing shareholder value was a motivation. I guess in your world Jen is great and takes no responsibility for her words or actions.
Then they can tell us how it was in our best interest to force it thru. Like last year when they did it in that slimy way and then told us that the motivations of the Board and management in forcing the reverse split were providing funds for the Company to continue operations, develop its products for improved cancer patient care, create a sustainable business and increase shareholder value.
HAHAHAHAHAHAHA.
Increase shareholder value. Clearly they are motivated by that. They care very deeply about us. It’s very heartwarming.
That makes sense because that’s what happened in last year’s vote. They had more Yes votes than No votes and the No votes were way under 50%. But those votes failed because they needed Yes votes.
Very well said.
I love this from the shareholder letter from Jen in April before the last rev split and the slimy way it was done.
She said dcth is regularly evaluating additional alternatives for capital and that they are committed to acting in the best, long-term interest of their shareholders in all that they do.
Hard not to laugh reading that junk after what she did in the last rev split and now looking to do another.
I wish they actually meant that.
Again if they had the votes pledged for the rev split from the groups that bought the offering why not just file a 14c like last time stating they already got the votes. Why spend money on a solicitation for a vote? Why play that game? The offering buyers have a reason to vote for the AS increase. They don’t have a reason to vote for reverse split.
You can say Jenny will force it like last time if it fails and she might. But this first vote could fail.
That’s where I am at. I don’t see any reason the offering holders would vote for this because it isn’t in their best interest to do so. Will Jenny come up with another underhanded back door disgusting way to push it thru? Maybe.
Yes but that would come after this vote doesn’t pass just like last time. That leaves open the possibility of a run if it doesn’t pass the first time.
Maybe they don’t have the votes locked up. If they did why wouldn’t they do a 14c like last time after the 14a failed saying they got written consent from a majority and they don’t need to solicit consents. If the offering purchasers were all in the bag then 14c notifying us they already have the majority votes would seem like what they would do. Instead they are doing 14a and soliciting our votes. Maybe it can fail and we can get a run like last time before they come up with another creative way to push it thru.
Cool. Somehow I had missed that. Thanks for pointing it out.
It would seem to create quite a dilemma if the vote on increasing AS was no. Must be a lot of confidence that won’t happen to accept that risk.
Are you sure about that? It wasn’t clear to me. It was clear the exercise price would be adjusted, but I wasn’t clear on the number of warrants being adjusted. I would certainly feel better if you are correct.
Who in their right mind would want the warrants which post reverse split will be 500 million warrants exercisable at $10? That would be $5 billion. Never happen.
The only way it would make sense to me would be if they knew the warrants would be repriced after the reverse split. Certainly Dcth has the ability to reprice.
My question is do they have the legal right to tell them upfront that a reverse split is coming that would make the exercise price $10, but don’t worry because we will reprice your warrants lower if you vote for the rev split? I’m not saying that happened because I have no idea. It would seem like the only way to pull that off. Essentially in my mind buying votes. And making the whole thing of the warrant price adjusting with the rev split a farce. Doesn’t seem right. I wonder if that’s allowed to play it that way to the benefit of certain shareholders?
Pure conjecture because I have no idea what goes on with this stock, the management and the BOD that is supposed to be looking out for our interest. Haha. That’s funny.
Although after the gimmick they pulled to get the last rev split approved I guess most anything is allowed.
Maybe the chatter and fear of a lawsuit will make them consider dropping the reverse split for now. Remember they only filed a preliminary proxy. The definitive proxy has yet to be filed and it can change. They could drop the reverse split from the proxy if they feel the heat.
So this is only a preliminary proxy. What if they got such tremendous push back, including from the offering purchasers, that in the definitive proxy still to be filed they changed to drop the reverse split and increase authorized to 2 or 3 billion?
I know I’m dreaming, but it could happen regardless of how unlikely it seems.
I just can’t fathom why anyone would have participated in the offering if they knew a reverse split was coming immediately because it is not good for the buyers. Is there a chance they didn’t know it was coming? I mean it wasn’t public information. It was inside information so maybe they couldn’t know. We all knew about the increase in authorized shares so they knew that, but maybe they were unpleasantly surprised by the reverse split. In that case they wouldn’t be definite yes votes. In fact they would be pissed and so would Roth at delcath for making them look bad to the buyers.
I mean why buy the offering if you know a highly destructive reverse split is coming immediately?
Also on the prior rev split when they rammed it thru they announced it was approved because they had written agreements immediately. If that was the case here why wouldn’t we have heard last night that they already have the votes for the rev split because the offering buyers already agreed?
I don’t know, but some things don’t make sense.
Well I’d like to think then that Roth found the buyers and as such there is no under the table agreement in place for the buyers to vote for the rev split. In such a fantasy scenario there would be a chance that they won’t get enough votes for the rev split because it isn’t good for the buyers of the offering and the stock runs like it did last year when the rev split didn’t pass.
I can dream, can’t I?
I don’t give that a high probability but I want to give myself some hope.
I’d throw a party.
Based on this if there is someone out there considering a hostile takeover because the company won’t cooperate now is the time to do it. By their own admission they need more available shares to block one if it comes. They don’t have available shares to block it now. So someone PLEASE launch a hostile takeover and fix this company before these upcoming votes allow the board to block it.
Practically you could say that. Morally is another story. The buyers of the offering would never vote for the rev split because it’s not good for them unless they were offered a sweetheart deal which would be another method to screw us. I’ll bet she has those 250 million votes lined up as part of the deal. So what is she offering them if anything? Their 500 million warrants will be exercisable at $10. That will take $5 billion to execute them. Never happen of course. Based on what happened with the convertible note my guess will be after this is approved they will allow the warrants to be executed shortly thereafter instead of in 1 year and lower the exercise price back to 2 cents. The stock will plunge back to where it is now and Dcth will get $10 million from it. Then time for another rev split. That’s my guess. Hopefully my very wrong guess.
Exactly. What is the BOD doing and where are they exhibiting any shareholder responsibility? I don’t see any. They specifically say the additional shares available after rev split will allow them to block hostile takeover if one comes along even though the takeover would likely give shareholders a premium. Hmmm. Is that in my best interest? And they point out the history of Dcth dropping after previous rev splits and the same is likely to happen again. So again how is that in my best interest? Jenny and the board are on a mission to get this to market themselves no matter how many times or how badly they have to destroy shareholders. I guess they think they own the company when in reality the shareholders they decide to destroy are the owners.
Good management is the most important thing. More important than the product. Bad management trumps good product. That is the rule of the experts that we all ignored. Jenny fooled me. After the last rev split and doing a fixed price offering instead of convertible now I thought she had learned something. I was wrong. Bad management always trumps all.
P-Mike?? Any words??
Shareholders get royally screwed while management keeps their cushy jobs. Probably worthy of another raise and bonus.
Good point. It’s a done deal. Only a lawsuit could stop this game.
They do mention the possibility of Nasdaq in the filing. Off course that would mean the price not collapsing which is hard to imagine. I still wonder about these warrants. They will adjust so the exercise price will be $10. I can’t believe they took those because a post rev split exercise price of $10?
They specifically say that the increased available shares would help them prevent a hostile takeover, even though they don’t know of any at this time, even though a hostile takeover could benefit shareholders with a higher price. Nice way to look out for your shareholders. How can it be okay for the board to repeatedly and knowingly screw the shareholders they are supposed to represent.
I think the answer is in and Jenny doesn’t love Hulk.
Maybe like last year they won’t get the votes. That’s the only chance. Interestingly the exercise price of the 500 million warrants will be adjusted for the rev split.
Unreal. They are merciless to their shareholders.
Let’s look at what can really happen regardless of logic. Take a mediocre company like AKER. They had 10 million shares outstanding. Over a few weeks the stock dropped from 80 cents to 40 cents on December 18. Then they priced an offering. They sold units. Stock, convertible preferred and warrants. Units priced at 15 cents. 21 million shares per A unit plus 24 million warrants exercisable at .1875. B units preferred convertible into 21 million common plus 24 million warrants. Stock dropped to 13 cents from 80 not long before. Massive overhang from .1875 warrants. Went from 80 cents to 13 cents. Went from 10 million shares to 52 million plus almost 50 million low priced warrants. No reason to recover with that overhang. Yet slightly over 1 month later on no news the stock ran up to 63 cents even with that horrible offering. And no news. Just saying. Logic doesn’t always dictate on these little bio stocks. DCTH in my opinion has more to offer product wise than aker.
Agreed. I added 10,000 yesterday, 10,000 today and likely another 10 or 20,000 tomorrow.
Leo, Your numbers are a little bit off.
The 38 million prefunded warrants are not included in the total outstanding because those shares are not issued yet. Hence the prefunding. However they are committed shares and therefore in reality it is as if 472 million shares are outstanding.
Also in my reading the prefunded warrants are not subject to those terms of not being executed for 1 year. That relates to the 500 million series d warrants. The 38 million prefunded warrants for shares don’t appear to have any real restriction other than the 9.99% ownership.
I hope so too. I agree the 2 cent purchase price would keep them from selling too low. With the 500 million warrants they might not feel the need to hold onto these initial shares though. Hopefully they want to hold them and agree with us that there is much more money to be made.
I wonder what the leak-out agreements will look like. Hopefully we mostly got investors that intend to hold their shares rather than quickly dump. We shall see.