LONDON, UK / ACCESSWIRE / September 15, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Delcath Systems, Inc. (NASDAQ: DCTH), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=DCTH. The Company announced on September 13, 2017, that its Board of Directors had approved the voluntary delisting of the Company's shares from the NASDAQ stock exchange. The decision was taken as the Company could not meet certain requirements of NASDAQ, after the Company failed to get shareholders' approval for the reverse stock split of the Company's shares. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Reason for listing on OTCQB
The Company disclosed that shareholders representing 223.4 million shares, or approximately 43.7% of the issued and outstanding stock, approved the reverse stock split. However, this was not in compliance of the NASDAQ Capital Market's requirements for continued listing. Due to this the Company has voluntarily agreed to delist its shares from NASDAQ and has filed the Form 25 with the Securities and Exchange Commission (SEC). The shares of the Company will be delisted from NASDAQ on or around September 22, 2017, i.e. within 10 days of filing Form 25. After this date, the shares of the Company will not be traded on the NASDAQ.
In the meanwhile, the Company has applied to the OTCQB for the listing of its shares under the ticker DCTH so that the Company's shares can start being traded from September 22, 2017. The Board believes that this decision is in the best interests of the Company and its shareholders.
Rationale behind the reverse stock split
Delcath had decided on the reverse stock split so that it could issue new shares to raise funds for the Company's day-to-day operations, support clinical programs, amortization of its Convertible Notes and avail equity financing. The Company had reached the maximum number of authorized shares of common stock under its Certificate of Incorporation. The Company needed additional authorized shares to arrange for equity financing and access approximately $11.8 million in cash which was blocked in the Convertible Notes issued in 2016. The reverse split would shrink the number of shares and hence allowing the Company to issue new shares for raising funds. The second reason for the reverse stock split was to comply with NASDAQ Capital Markets' continued-listing requirements. The reverse stock split and related amendment to the Company's Certificate of Incorporation required shareholders' approval. If the Company failed to get the shareholders' approval, it faced the risk of the shares being delisted from NASDAQ for non-compliance of NASDAQ's minimum bid price requirements.
Backdrop
On May 05, 2017 Delcath had proposed an amendment to its Certificate of Incorporation to affect a reverse stock split of its common stock. The proposed reverse stock is for a ratio range between 1:20 and 1:500 at the Board's discretion so that it has maximum flexibility while taking decisions. The Company had scheduled its Annual Meeting of Stockholders for FY17 on June 05, 2017, to discuss various matters including the reverse stock split. However, the stockholders' meeting was adjourned without any decisions being taken. The Company rescheduled the meetings a couple of times so that more of its shareholders could participate. Finally, on August 22, 2017, the Company has extended the final deadline to vote to September 07, 2017. However, the Company failed to garner the requisite shareholder's approvals to affect the reverse stock split.
About Delcath Systems Inc.
New York based Delcath Systems was founded in 1988 and is a pharmaceutical and medical device company which focuses on oncology and liver cancer therapy. The Company has developed and commercialized its flagship proprietary product Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS). The injection is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. The injection has been approved for use in Europe since 2012 under the brand name Delcath Hepatic CHEMOSAT® Delivery System for Melphalan (CHEMOSAT). The injection is being used by major medical centers in Europe for the treatment of primary and metastatic liver cancers. However, at present, the US Food & Drug Administration (FDA) has not approved Melphalan/HDS for sale in the US.
Last Close Stock Review
On Thursday, September 14, 2017, the stock closed the trading session flat at $0.10 with a total volume of 79.70 million shares traded. Delcath Systems' stock price skyrocketed 78.07% in the past three months and 1.63% in the previous six months. The stock currently has a market cap of $55.03 million.
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