DELCATH TO RAISE APPROXIMATELY $7.5 MILLION
October 23 2013 - 8:47AM
New York, NY
-October 23, 2013 - Delcath Systems, Inc. (NASDAQ: DCTH)
today announced that it is raising approximately $7.5 million in
gross proceeds in an offering of 20,960,000 shares of its common
stock and warrants to purchase up to 9,432,000 shares of common
stock at a combined price to the public of $0.36 per share and
related warrant. The warrants are exercisable beginning on the date
six months after the date of issuance at an exercise price of $0.44
per share and will expire, unless exercised, on the fifth
anniversary of the date of issuance.
The net proceeds from the sale of
the shares and the related warrants, after deducting the placement
agent fees and other estimated offering expenses payable by
Delcath, will be approximately $6.8 million, which does not include
any potential proceeds from the cash exercise of any warrants.
Delcath intends to use the net proceeds from this offering
(including any resulting from the exercise of the warrants, if any)
for general corporate purposes, including, but not limited to,
funding of its clinical trials, commercialization of its products,
obtaining regulatory approvals, research, capital expenditures and
working capital.
Roth Capital Partners, LLC, served
as sole placement agent. The offering is expected to close on
October 28, 2013, subject to customary closing conditions.
The shares described above are
being offered by Delcath pursuant to a registration statement
previously filed with and subsequently declared effective by the
Securities and Exchange Commission. A prospectus supplement
relating to the offering will be filed with the SEC and will be
available on the SEC's website at www.sec.gov.
This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
any of the securities described herein, nor shall there be any sale
of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. Copies of the prospectus supplement and accompanying
base prospectus relating to this offering may be obtained from Roth
Capital Partners, LLC, 888 San Clemente, Newport Beach, CA 92660,
(800) 678-9147 or by accessing the SEC's website at
www.sec.gov.
About
Delcath Systems
Delcath Systems, Inc. is a
specialty pharmaceutical and medical device company focused on
oncology. Our proprietary drug/device combination product, the
Delcath Hepatic Delivery System, is designed to administer high
dose chemotherapy and other therapeutic agents to the liver, while
controlling the systemic exposure of those agents. The Company's
initial focus is on the treatment of primary and metastatic liver
cancers. Outside of the United States, our proprietary product to
deliver and filter melphalan hydrochloride is marketed under the
trade name Delcath Hepatic CHEMOSAT® Delivery System for melphalan
hydrochloride. The Company obtained authorization to affix a CE
Mark for the Generation Two CHEMOSAT Delivery System for Melphalan
in April 2012. The right to affix the CE mark allows the Company to
market and sell the CHEMOSAT Delivery System for Melphalan in
Europe. In addition, the Company has initiated plans to investigate
Melphalan Hydrochloride for Injection for use with the Delcath
Hepatic Delivery System for primary liver cancer.
Private
Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made by the Company or on its behalf.
This news release contains forward-looking statements, which are
subject to certain risks and uncertainties that can cause actual
results to differ materially from those described. Factors that may
cause such differences include, but are not limited to,
uncertainties relating to: efficiencies and reduction in cash
utilization achieved through September 2013 staff reductions,
the leadership transition plan and its impact on the Company,
the Company's ability to satisfy the requirements of the
FDA's Complete Response Letter and provide the same in a
timely manner, clinical adoption, use and resulting sales, if any,
for the CHEMOSAT system to deliver and filter melphalan in Europe,
our ability to successfully commercialize the chemosaturation
system and the potential of the chemosaturation system as a
treatment for patients with primary and metastatic disease in the
liver, our ability to obtain reimbursement for the CHEMOSAT system
in various markets, the timing and results of future clinical
trials including without limitation the HCC trials, approval of the
current or future chemosaturation system for delivery and
filtration of melphalan, doxorubicin or other chemotherapeutic
agents for various indications in the US and/or in foreign markets,
actions by the FDA or other foreign regulatory agencies, our
ability to successfully enter into strategic partnership and
distribution arrangements in foreign markets including Australia
and key Asian markets and timing and revenue, if any, of the same,
uncertainties relating to the timing and results of research and
development projects,, and uncertainties regarding our ability to
obtain financial and other resources for any research, development,
clinical trials and commercialization activities. These factors,
and others, are discussed from time to time in our filings with the
Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date they are made. We undertake no obligation to publicly
update or revise these forward-looking statements to reflect events
or circumstances after the date they are made.
Contact Information: |
Investor Contact: |
Media Contact: |
Michael Polyviou/Patty Eisenhaur |
John Carter |
EVC Group |
EVC Group |
212-850-6020/951-316-0577 |
212-860-6021 |
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Source: Delcath Systems, Inc via Thomson Reuters ONE
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