Delcath Systems Inc (DCTH)

[Tekterra]

New filing has insight into RS ratio. The floor price of 0.05 will be adjusted to minimum of 1.00$ That means the RS ratio is 1 for 20 at the minimum. 0.05 x 20= 1$. It doesn't mean they won't do anything higher than 1 for 20 since the proxy stated it will be in the range of 20-500.

Last two times they did a 1 for 16 RS. My guess is we probably get a 1 for 20 or slightly higher but I don't think anything too high is in the planning. In any case, 1 for 20 or so RS will put us in the 2-3$ range with a 1$ floor price. But, the warrant price of 1$ doesn't prevent people from dumping and shorts taking this below 1$ again. 50% or greater loses is very real. Warrants allow holders to buy direct from company at exercise price like options. But that's not buying from the open market. The open market is still dependent on common shareholders buying and selling. Selling pressure will crash the stock.


"Additionally, the floor price of $.05 for the remaining 10% of our Convertible Notes will be required to adjust by NASDAQ with the effected reverse stock split ratio to a minimum of $1.00. We believe this should serve to support the stock price following a split and reduce future potential dilution related to the Convertible Note. "