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Thursday, July 06, 2017 10:12:34 AM
As mentioned above, Delcath Systems released an 8K today informing investors of Series B financing. Through this financing, DCTH will raise $2 million in gross proceeds. According to the 8K, the new Series B Preferred Stock comes with no dividend, liquidation, or other rights. However, they can be converted into shares of common stock at a price equal to $0.1530 per share upon the earlier of the date of closing to the extent that the holder reallocates shares of common stock reserved for issuance under its certain senior secured convertible notes to conversions of the Series B Preferred Stock.
the 8K, DCTH said that it has entered into a Securities Purchase agreement with certain institutional investors for the sale of 2,360 shares of Series B Preferred stock at a price of $1,000 per share. The company intends on using the proceeds from the transaction for general corporate purposes.
The 8K also mentioned that the company will soon be seeking approval for a reverse split of shares. Ultimately, the goal of this split will be to increase the price of shares to more than $1.00. This is a requirement to remain listed on the NASDAQ.
Why I'm Not Concerned
At the end of the day, any offering can lead to dilution, which proves to be concerning for investors. However, in this particular case, I'm far from concerned about DCTH. The reason is relatively simple. Ultimately, the company is doing incredible work with Chemosat®. I'm not going to dive too deep into Chemosat here as I've covered the topic in great detail in the past. Nonetheless, the treatment is already approved in Europe and showing incredible promise for approval in the United States.
Considering the high value asset that Chemosat will likely prove to be in the long run, the value proposition here is absolutely incredible. As a result, it's likely that today's dip in value is nothing more than a buying opportunity.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DCTH. In particular, we're interested in continuing to follow the company through bringing Chemosat to the global market. Considering the data surrounding the treatment, it could be the goose that lays the golden eggs relatively soon. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
Recent DCTH News
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/09/2024 03:13:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/09/2024 01:01:01 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/29/2024 08:06:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 08:32:33 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 08:31:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 08:30:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 08:30:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 08:28:10 PM
- Delcath Systems Announces Appointment of Bridget Martell, MA, MD to Delcath’s Board of Directors • Business Wire • 05/28/2024 01:30:00 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 05/17/2024 04:48:32 PM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 05/16/2024 06:05:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/16/2024 05:09:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/16/2024 04:56:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/16/2024 04:45:15 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/14/2024 01:14:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 12:05:15 PM
- Delcath Systems Reports First Quarter 2024 Results and Business Highlights • PR Newswire (US) • 05/14/2024 11:30:00 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/09/2024 09:12:20 PM
- Form S-3/A - Registration statement under Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 05/08/2024 08:02:02 PM
- Delcath Systems to Host First Quarter 2024 Earnings Call • PR Newswire (US) • 05/07/2024 12:30:00 PM
- Publication of Results from Pivotal FOCUS Study in Metastatic Uveal Melanoma Patients treated with HEPZATO KIT • PR Newswire (US) • 05/06/2024 01:00:00 PM
- Delcath Systems Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4) • PR Newswire (US) • 05/03/2024 09:15:00 PM
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