Home Business Delcath Systems, Inc. (NASDAQ:DCTH) Tumbles As NASDAQ Listing Ends

Delcath Systems, Inc. (NASDAQ:DCTH) Tumbles As NASDAQ Listing Ends

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Delcath Systems, Inc. (NASDAQ:DCTH)
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Delcath Systems, Inc. (NASDAQ:DCTH)

Delcath Systems, Inc. (NASDAQ:DCTH) tumbled 17.92% after announcing a voluntary delisting of its shares from the NASDAQ Capital Market. Delisting comes after the stock failed to meet the minimum requirements needed for continued listing on the exchange.

NASDAQ Delisting

Delcath stock has underperformed the overall industry for the better part of the year after tumbling from highs of $1.00 per share at the start of the year. Following delisting from the NASDAQ, Delcath Systems, Inc. (NASDAQ:DCTH) is currently trading on the OTCQB under the symbol DCTH.

Delisting comes after the company failed to secure shareholder approval for a reverse stock split that could have shored up the stock price. While 43.7% of shareholders holding 223.4 million shares approved the proposed reverse stock split, it did not meet the Delaware standards of approval due to the number of non-voting shares

“The decision to delist from NASDAQ was taken following the Company’s review and consideration of several factors including the likelihood of ongoing non-compliance with the NASDAQ listing requirements. The Board of Directors determined that an orderly transition to the OTCQB is in the best interests of the Company and its shareholders,” Delcath Systems, Inc. (NASDAQ:DCTH) in a statement.

Convertible Notes Extinguishment

Delisting from the NASDAQ arouses concerns about an agreement that the company had reached with one of its majority note-holders for the extinguishment of 2016 Convertible Notes. The transaction was contingent on Delcath Systems, Inc. (NASDAQ:DCTH) effecting a proposed reverse stock-split.

Extinguishment of the convertible notes could have reduced future dilution of the Convertible Notes in addition to trimming the company’s debt. Following the listing of the stock on the OTCQB market, it awaits to be seen if Delcath Systems, Inc. (NASDAQ:DCTH) will push for a new deal with the note holder.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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