Delcath Systems Inc (DCTH)

[Potfolio]

Why this agreement structure and why now?

I assume the note holder had to agree to this structure? They basically are getting 120M shares for $2.2M owed -- so around 2 cents a share for conversation sake. So they obviously didn't need to do it --- so I'm assuming they are confident that they could get a premium for their shares by taking them all now.

The company clearly was OK giving out a discount to get rid of the note...for what reason?
To me it is either they have new long term funding lined up where they maybe wanted certain collateral on the patents and/or acquisition...and/or maybe they truly just like screwing the commons :)

I'm not a day trader so I approach this that sometime in Q1 there will be 230M shares O/S (Excl warrants) and at $0.04 a share it's market cap is $9M.

Still feels cheap to me....

And no one talks about Europe sales growth, the elimination of interest expense, etc.

I'm a buyer in the $0.03-$0.04 range...won't chase though - no way do I see this getting past $0.05 now in the next few weeks with the dilution ahead.