Replies to post #34094 on Delcath Systems Inc (DCTH)

[Rapture2020]

SimSim, this is the only troubling thing I want an answer for:

PROPOSAL 1: INCREASE IN AUTHORIZED SHARES

Background of the Authorized Share Increase Proposal

Our Board has determined that it is advisable and in our and our stockholders’ best interests to increase the number of authorized shares of common stock from 500,000,000 to 1,000,000,000 shares, par value $0.01 per share. Accordingly, stockholders are asked to approve an amendment to our Articles of Incorporation to effectuate such increase.

The Board strongly believes that the increase in the number of authorized shares of common stock is necessary to provide us with sufficient authorized shares so that the holders of the Series D warrants issued in conjunction with our February 9, 2018 public offering may exercise their warrants.

So what happens if the vote is no? Seems pretty reckless for both parties to contract for a future event that may or may not happen as part of a present day bargain.



http://phx.corporate-ir.net/phoenix.zhtml?c=123840&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEyMDU4NjU0JkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3#tx490723_1

[tickerpicker]

Not sure you understand how the RS will affect these warrants. Go to latest S1 filing and read in exhibit index about form of Series D warrants. If there is a 500:1 reverse split the 500M warrant shares will be adjusted by that ratio. So that would make 1M warrant shares exercisable at around 10 bucks ea. Exercise price will adjust down with any lower priced offering made.