Delcath Systems Inc. (NSDQ:DCTH) closed its offering of 5 million shares of common stock with a reported $23.5 million raised.
Shares sold for $5.05, driving down the company’s shares 14 percent on The Street, from a closing price of $5.87 on July 14, the day of the offering, to $5.06 by the end of the day July 15.
The New York-based company granted the sole bookrunner in the deal, Jeffries & Company, an over-allotment option to purchase up to 750,000 shares more at the same price until mid-month August 2011, according to the report.
Delcath stock has had a number of spikes and troughs over the last year, and last month company president & CEO Eamonn Hobbs told MassDevice what might be driving the roller coaster:
Delcath is an extremely volatile stock and there a number of components to that. One is that it’s a stock that’s shareholder based, that’s dominated by retail shareholders who tend to be much more active traders. The trading volume is high and the volatility seems to be equally high. The stock seems to go up significantly on good news and down significantly on bad news — or no news.
Delcath shares closed at $5.09 today, 1 cent lower than yesterday.
Here’s a roundup of other dealflow and investment news:
- Corgenix lands $1.5 million revolving credit facility
Diagnostic test maker Corgenix Medical Corp. (OTC:CONX) announced that it closed on a $1.5 million secured revolving line of credit with LSQ Funding Group and is discussing moving its primary banking to U.S. Bank.
"Our new credit facility, combined with the company’s prospects for a record year in fiscal 2012, will definitely help provide us the platform to access an additional $1.5 million in potential capital to pursue our planned expansion efforts and capitalize on other opportunities that may come our way," senior VP of operations and finance and CFO William Critchfield said in the report.
- VasoStar wins $1 million grant from Ohio Third Frontier
VasoStar Inc. won a $1 million research grant from Ohio Third Frontier to commercialize an electromagnetic guidewire system for penetrating through chronic total occlusions in arteries as an alternative for open heart surgery.
The Cleveland, Ohio-based company, a subsidiary of Frantz Medical Group, plans to use the funds to complete development and collect additional safety data in preparation for FDA and CE Mark bids.