The Queensbury, N.Y.-based company priced the round at $1,000 per unit, with each unit consisting of a preferred convertible share worth 16,667 common shares, at a 6¢ strike price, and a five-year warrant for another share, also at 6¢ apiece.
Delcath developed the Chemostat hepatic delivery system, which is designed to isolate the liver’s circulatory system, infuse it with chemotherapy and then filter that blood before returning it to the patient.
“With this transaction completed, we have a cash runway beyond top-line data, a clean capitalization table and the foundation for a possible path to NASDAQ listing,” said Delcath president & CEO Jennifer K. Simpson in a news release. “Looking forward, we are positioned for success through multiple value inflection points including full enrollment, top-line data and NDA filing — targeted for Q4 2019, 1H 2020 and Q4 2020, respectively, in our registration trial for the treatment of metastatic Ocular Melanoma (mOM). mOM is a devastating disease of high unmet-need for which there is no approved standard-of-care in the United States and for which the Company has orphan drug designation.”
If it metastasizes, ocular melanoma usually moves first from the eye to the liver, as it is spread through the blood rather through than the lymphatic system, according to the Ocular Melanoma Foundation.
“The management team has laid the foundation for a leading interventional oncology platform company and now has the resources, capital structure and operational resources to move forward its long-term priorities and growth plans, to maximize shareholder value,” Simpson added.
Delcath also recently added John R. Sylvester, chief commercial officer of BTG, to its board of directors.
DCTH shares were up 32% to $0.126 in mid-morning trading.