Delcath Systems Inc (DCTH)

[Rapture2020]

Thanks, DE. I don't believe the fail thresholds are particularly onerous so that helps.

With respect to the OS:

1. $30M investment creates 17,142,857 shares (@ $1.75).
2. $50M investment creates 28,571,429 shares (@ $1.75).
3. The D-1 warrants are out the door and a sunk cost (1,116,256 shares), exercise immediately, but exercise price is $4.00. I wouldn't expect to see immediate dilution from these if/until stock gets in the $4 range.
4. Ten million (10,000,000) of the 12,953,695 D-2 Warrants can be sold beginning 5 December 2018, but DCTH can buy those back. Given the nature of the Rights Offering and the subsequent Backstop Offering, I would expect DCTH to buy these back prior to execution per contract language. Again, my estimates only.

I don't have a firm grasp yet on warrants generally (other than those listed in the two purchase agreements), but total OS after Rights and Backstop Offering completed won't exceed 45M (again, not strong on additional warrants, if any are out there). In return, DCTH receives a minimum of $30,000,000 in funding with a max at $50,000,000.

This gets them across the finish line.