Delcath Systems Inc (DCTH)

[Leotrader211]

PLAN OF DISTRIBUTION
Each investor in this offering will enter into separate and substantially similar leak-out agreement with us. During the period commencing on the date of the securities purchase agreement and ending April 16, 2018, each investor who is party to a leak-out agreement (together with certain of its affiliates) may not sell, dispose or otherwise transfer, directly or indirectly (including, without limitation, any sales, short sales, swaps or any derivative transactions that would be equivalent to any sales or short positions), on any trading day, shares purchased in this offering, including the shares of Common Stock issuable upon exercise of the Series D Warrants, in an amount more than a specified percentage of the trading volume of the Common Stock on the principal trading market, subject to certain exceptions. The aggregate trading volume for all investors who execute leak-out agreements will be 35% of the trading volume of the Common Stock on the principal trading market during each trading day during the above-referenced leak-out period, subject to certain exceptions. This restriction does not apply to any actual “long” (as defined in Regulation SHO promulgated under the Securities Exchange Act of 1934, as amended) sales by such investor (together with certain of its affiliates) at a price greater than $0.06. In addition, each investor has agreed to not sell shares purchased in this offering, including the shares of Common Stock issuable upon exercise of the Series D Warrants, on the date of amendment of our articles of incorporation to increase the authorized shares of common stock and for ten trading days thereafter, provided that the restriction does not apply to any actual “long” sales by such investor (together with certain of its affiliates) at a price greater than $0.06.



https://www.sec.gov/Archives/edgar/data/872912/000119312518038922/d296322d424b4.htm#toc296322_17