Delcath Systems Inc (DCTH)

[Leotrader211]

Waqas Khatri last year bought 41M shares on July 11 and sold it on August 11. He had to file 13G on both occasion. This year on Feb 9 he bought for $600K about 31M shares or 7.1% of O/S and has not sold it as of March 23 yet.He is definitely not stupid to sit on 31M shares with 40% loss and hping it gets further diluted after R/S and A/S increase.

With Yes vote for 1:500 RS and 1B A/S, Waqas will have 186K shares including 2 for 1 warrants out of 1.8M o/s on day one. His ownership will increase to 10.3%. At currwnt price his ownership $value will be $1.1 M on day one and will have made profit of 82% on paper. DCTH will start to dilute 50M shares a day post split starting at at $5.9 post split pps with assumed 50M shares issued per day reducing the pps to 20 cents by end of day, his value on day 2 will be 37K or 95% loss, if he did not sell on day one. Even if he sells at VWAP on day one, he will still loose money on this investment. Why would he do that? He is not dumb or is he?

If the vote is NO, he can make easily make 5 folds on 31M shares bought at 2cents and 600K investment will look like 3M at 10 cents pps. If I were him I will vote NO and take 400% profit and cash out. If he is not dumb, he would have voted NO.

There has to be something going on here, which is not being disclosed to us mortal retail bag holders.