Delcath Systems (NSDQ:DCTH) and a group of investors made an end run around the company’s shareholders with a deal that paves the way for the reverse split that stockowners have twice shot down.

“Together with our Board of Directors, we are taking these actions in the best interests of all shareholders. Regaining access to equity capital will allow us to continue investing in our Clinical Development Program and our commercial efforts in Europe,” president & CEO Jennifer Simpson wrote in a letter to the company’s shareholders.

Delcath proposed a reverse stock split in June and September of this year, but both times stockholders voted against the move. The company said those decisions left it unable to access cash otherwise available under 2016 convertible notes or to go after new equity financing.

Delcath said that it unless it made authorized shares available, it wouldn’t be able to fund its business beyond the next few months.

The company inked a deal with the 2016 convertible note holders, providing the issuance of Series C preferred shares in exchange for $500,ooo in cash. The deal gave the convertible note holders “enhanced voting rights” – sufficient to give a thumbs-up on the reverse stock split.

Two of Delcath’s shareholders authorized the board to effect a reverse stock split at either a 1:50, 1:100 or 1:350 ratio.

The board has 20 days to make a decision.

“The Company’s stockholders in general have been given two opportunities to make their voices heard since June and twice voted more in favor than against (approximately 60% and 65% of voted shares for the September 7 and June 13 proposals, respectively),” the company said. “The approval of this reverse stock split is reasonably related to a rational objective – granting the Company access to capital so that it can continue as a going concern.”

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