Delcath Systems (Nasdaq:DCTH) announced today that it entered into a securities purchase agreement worth $7 million in proceeds.
The company entered into an agreement with certain accredited investors for the private placement. The collection of investors includes existing investors, Delcath executives and members of the board of directors.
Delcath plans to issue and sell 876,627 shares of common stock at a price of $3.72 apiece. To certain investors, it intends to sell just over one million pre-funded warrants in lieu of shares of common stock. Those warrants enable the purchase of up to just over a million shares of common stock at a price of $3.71 apiece.
Pre-funded warrants have an exercise price of 1¢ per share of common stock, according to a news release. They’re immediately exercisable and remain exercisable until exercised in full.
Delcath expects gross proceeds of approximately $7 million before deducting offering expenses payable by the company. It intends to use net proceeds from the private placement for working capital purposes and other general corporate purposes. The company expects the offering to close on March 19, 2024, subject to the satisfaction of customary closing conditions.
New York-based Delcath develops interventional oncology offerings. Its Hepzato therapy is a percutaneous targeted, whole-organ treatment that delivers a select high-dose chemotherapy agent directly to the liver.
