New York’s Delcath Systems (NSDQ:DCTH) is looking to raise about $7.5 million through sales of common stock, planning on using the funds for working capital, commercialization efforts, clinical trials and other "general corporate purposes."
The news didn’t sit well on Wall Street, where DCTH shares have lost about 23% since opening today. Shares were going for 32¢ as of about 12:05 p.m.
The troubled device maker announced that it’ll offer nearly 21 million shares of DCTH common stock and about 9.4 million shares of warrants at 36¢ apiece. After paying offering expenses and agent fees, Delcath expects to net about $6.8 million from the sale.
Delcath has had a rough year, with DCTH shares down 72.6% since opening at $1.24 on January 2. The company earlier this month announced layoffs for 33% of its workforce, 21 total employees, as it looked for ways to save some cash and "increase operating efficiencies".
Delcath last month ousted president & CEO Eamonn Hobbs, just days after the company revealed that it had received an FDA "complete response letter," finalizing the agency’s decision not to approve Delcath’s targeted liver cancer therapy device.
The company has been under pressure since an FDA advisory panel last spring recommended against approval for the Melblez device. The FDA’s Oncologic Drugs Advisory Committee voted 16-0 that the risks associated with Delcath’s Melblez Kit are higher than its potential benefits for patients with unresectable ocular melanoma metastatic to the liver.