Home Biotech Delcath Systems, Inc. (NASDAQ:DCTH) Outlines Plans

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

delcath inc NASDAQ:DCTH
Everything is possible when you check your health on time

Delcath Systems, Inc. (NASDAQ:DCTH)

Delcath Systems, Inc.(NASDAQ:DCTH) downward spiral continued after its delisting from the NASDAQ Capital Market as the stock fell 29.19% to end the week at $0.0565 a share. The slump came after the interventional oncology company provided a business update and strategies it plans to use to preserve access to capital.

Delcath Systems, Inc.(NASDAQ:DCTH)
One month DCTH stock price chart

Delcath Systems New Capital Debacle

Delcath’s update did little to prevent a further slide of the stock as investors remained skeptical about the company’s ability to access new capital, needed to continue operating as a going concern. The stock is currently trading at multi-year lows after struggling to rise above the $1 a share mark, needed for continued listing on the NASDAQ.

Delcath Systems, Inc. (NASDAQ:DCTH) finds itself in the current position on failing to meet the minimum threshold needed for a reverse stock-split that could have shored up the stock price. Delisting from the NASDAQ means the company cannot access restricted cash available under the 2016 convertible notes. The company cannot also be able to pursue new equity financing.

Note Holders Agreement

Unless the company issues authorized shares it cannot be able to access the new capital needed to fund the business operations over the next few months. In a bid to gain access to additional financing, the company has inked an agreement with 2016 convertible Note Holders.

“This agreement provides for the issuance of Series C preferred shares in exchange for $0.5 million in cash, providing us with the necessary cash to continue our operations in the short term and providing the convertible note holders with enhanced voting rights sufficient to approve a reverse stock split,” Delcath In a Statement.

CHEMOSAT Development

In addition to pursuing capital opportunities, Delcath Systems, Inc. (NASDAQ:DCTH) has reiterated its commitment to growing shareholder value. The Company plans to use the new capital financing to support clinical development program and commercial efforts in Europe.

The company’s investigational product Melphalan Hydrochloride for use with the Delcath Hepatic Delivery’s system is currently approved in Europe. The product is commercially available under the trade name Delcath Hepatic CHEMOSAT Delivery System for Melphalan.

Delcath Systems, Inc. (NASDAQ:DCTH) is banking on ongoing clinical trials in Europe to help support its push for regulatory approval in in the U.S.

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.

Don’t miss out! Stay informed on $DCTH and receive breaking news on other hot stocks by signing up for our free newsletter!