Business
Delcath Systems Announces up to $85 Million Financing
Led by Vivo Capital with participation from Logos Capital, BVF Partners LP, Stonepine Capital Management, LLC, Serrado Capital LLC and supported by existing
About this update from Delcath Systems, Inc.
[{"type":"text","content":"Led by Vivo Capital with participation from Logos Capital, BVF Partners LP, Stonepine Capital Management, LLC, Serrado Capital LLC and supported by existing investor, Rosalind Advisors \n$25 million financing upfront with up to an additional $60 million tied to satisfaction of milestones\nAggregate financing expected to be sufficient to fund Company through potential approval of HEPZATO and commercialization\nNEW YORK, March 27, 2023 /PRNewswire/ -- Delcath Systems, Inc. (Nasdaq: DCTH) (the \"Company\" or \"Delcath\"), an interventional oncology company focused on the treatment of primary and metastatic cancers of the liver, today announced that the Company has signed securities purchase agreements with certain healthcare-focused institutional investors that will provide up to $85 million in gross proceeds to Delcath through a private placement that includes initial upfront funding of $25 million.\n\n \n \n \n \n \n \n\n \nThe financing is being led by Vivo Capital with participation from Logos Capital, BVF Partners LP, Stonepine Capital Management, LLC, Serrado Capital LLC and supported by existing investor, Rosalind Advisors.\nThis financing is expected to enable the Company to have sufficient cash past its anticipated PDUFA date of August 14, 2023, and fund the commercialization of HEPZATO, if approved.\nAbout the Private PlacementPursuant to the securities purchase agreements, the Company will issue to purchasers (i) an aggregate $24.9 million in shares of the Company's Series F Convertible Preferred Stock and (ii) two tranches of warrants that are exercisable for shares of the Company's Series F Convertible Preferred Stock as follows:\nTranche A warrants for an aggregate exercise price of approximately $34.9 million are exercisable until the earlier of 3/31/2026 or 21 days following the Company's announcement of receipt of FDA approval for HEPZATO; andTranche B warrants for an aggregate exercise price of approximately $24.9 million are exercisable until the earlier of 3/31/2026 or 21 days following disclosure of the Company's public announcement of recording at least $10 million in quarterly U.S. revenue from the commercialization of HEPZATO.Shares of Series F Convertible Preferred Stock will be issued at a price of $1,000.00 per share. Conversion of the Series F Convertible Preferred Stock into shares of common stock of th...