Business
Delcath Systems Announces Resumption of Interest-Only Period for Company's Debt Facility
Amendment with Avenue Venture Opportunities Fund, L.P. provides for an interest-only period from March 31, 2023 to September 30, 2023 and defers $4.3 million
About this update from Delcath Systems, Inc.
[{"type":"text","content":"Amendment with Avenue Venture Opportunities Fund, L.P. provides for an interest-only period from March 31, 2023 to September 30, 2023 and defers $4.3 million in principal payments\nNEW YORK, April 3, 2023 /PRNewswire/ -- Delcath Systems, Inc. (Nasdaq: DCTH), an interventional oncology company focused on the treatment of primary and metastatic cancers of the liver, today announced it reached an agreement to amend its existing loan agreement with Avenue Venture Opportunities Fund, L.P. (\"Avenue\").\n\n \n \n \n \n \n \n\n \nAvenue agreed to provide an interest-only (\"I/O\") period from March 31, 2023 to September 30, 2023. The I/O period defers approximately $4.3 million in principal payments to beyond September 30, 2023. The I/O period may be extended at Delcath's option to December 31, 2023 if, by September 30, 2023, Delcath has (a) received FDA approval for the HEPZATO Kit and (b) received net proceeds of at least $10 million from the sale and issuance of equity securities or exercise of existing warrants. In exchange for this extension, Delcath has agreed to provide Avenue 34,025 warrants to purchase shares of common stock. The exercise price of the warrants is $0.01.\n\"We appreciate the ongoing support of Avenue in resuming the interest-only period to help us preserve near-term cash,\" said Gerard Michel, Chief Executive Officer of Delcath. \"This amendment in combination with the recent equity financing, extends our cash runway well beyond our August 14th PDUFA date for HEPZATO Kit.\"\nAbout Delcath Systems, Inc.\nDelcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. The company's proprietary products, HEPZATO Kit (melphalan hydrochloride for Injection/Hepatic Delivery System) and CHEMOSAT® Hepatic Delivery System for Melphalan percutaneous hepatic perfusion (PHP) are designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects during a PHP procedure.\nIn the United States, HEPZATO Kit is considered an investigational drug/device combination product regulated as a drug by the United States Food and Drug Administration (FDA). HEPZATO Kit is comprised of the chemotherapeutic drug melphalan and Delcath's proprietary Hepatic Delivery System (HDS). The HDS is used to surgically isolate the liver...