DELCATH SYSTEMS, INC. (NASDAQ:DCTH) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On December28, 2017, Delcath Systems, Inc. (the “Company”) entered into exchange agreements (collectively, “Exchange Agreements”), each by and between the Company and an investor from its June 2016 private placement of senior secured convertible notes (as further exchanged, the “Notes”) originally issued to that certain Securities Purchase Agreement, dated June6, 2016, by and among the Company and such investors. to the Exchange Agreements, we (i)extinguished our remaining $3,027,408 in outstanding obligations under the Notes in full, (ii)obtained a release of restrictions on $2,046,897.66 in restricted cash held in our control accounts, (iii)issued to the investors shares (the “Shares”) of our common stock (or rights (“Rights”) to receive common stock to the extent such issuance of Shares would otherwise result in the beneficial ownership by any such investor of more than 4.9% or 9.9% of our issued and outstanding stock), as applicable, of an aggregate of 123,708,735 shares of our common stock (in each case, subject to trading restrictions set forth in leak out agreements the Company separately entered into with each investor (collectively, the “Leak-Out Agreements”)) and (iv)a cash payment to the investors of $829,830.54 from the restricted cash held in our control accounts. The number of shares of the Company’s issued and outstanding common stock immediately following issuance of the initial Shares to the investors is 114,054,852.
The Rights may be exercised in whole or in part by an investor, without payment of additional consideration, at any time an investor would not beneficially own more than 4.9% or 9.9% (as set forth in the applicable Exchange Agreement) of the Company’s common stock (along with any shares of the Company’s common stock owned by any Attribution Parties) outstanding immediately after giving effect to such exercise. The Shares and Rights were issued in transactions exempt from registration under Section4(a)(2) of the Securities Act of 1933, as amended, and the Shares and Rights were also issued in compliance with Section3(a)(9) thereunder such that for Rule 144 purposes the holding period for the Shares and Rights and shares of Company common stock underlying the Rights may be tacked onto the holding period of the Notes.
The foregoing summaries of the terms of the Exchange Agreements and the Leak-Out Agreements do not purport to be complete and are qualified in their entirety by the terms of the Exchange Agreements and the Leak-Out Agreements attached hereto as Exhibits 10.1 and 10.2, respectively. Roth Capital Partners acted as financial advisor with respect to the transactions described herein.
Item 1.01. Unregistered Sales of Equity Securities.
See Item 1.01 above.
Item 1.01. Financial Statements and Exhibits.
(d) Exhibits.
DELCATH SYSTEMS, INC. ExhibitEX-10.1 2 d515543dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 EXCHANGE AGREEMENT This Exchange Agreement (the “Agreement”) is entered into as of the 28th day of December,…To view the full exhibit click here
About DELCATH SYSTEMS, INC. (NASDAQ:DCTH)
Delcath Systems, Inc. is a late-stage clinical development company with early commercial activity in Europe focused on cancers of the liver. The Company is a specialty pharmaceutical and medical device company developing its product, Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS). The Company’s system delivers and filters melphalan hydrochloride, which is marketed as a device under the trade name Delcath Hepatic CHEMOSAT Delivery System for Melphalan (CHEMOSAT). The Company’s focus is on the execution of the clinical development program (CDP) in ocular melanoma liver metastases (mOM), intrahepatic cholangiocarncinoma (ICC), hepatocellular carcinoma (HCC or primary liver) and other cancers that are metastatic to the liver.
