Shares in Delcath Systems (NSDQ:DCTHD) crashed today after the company posted its third quarter results, revealing that the company’s net losses have grown dramatically quarter-over-quarter.
The N.Y.-based company posted a net loss of -$12.6 million on sales of $684,000 for the 3 months ended Sept. 30, for sales growth of 57% compared with the same period last year. In Q3 of last year, Delcath posted a net loss of just -$1.0 million.
Adjusted to exclude 1-time items, earnings per share were -$9.36.
“During our third quarter, we focused on resolving the cash constraints and other restrictions related to our authorized shares limit, which necessitated the reverse stock split we effected on November 6, 2017,” president & CEO Jennifer Simpson said in prepared remarks.
“The authorized share limit prevented the company from accessing the restricted cash otherwise available under our 2016 convertible notes. With the ability to issues shares now restored, we are able to access the balance of the restricted cash and begin exploring opportunities for new equity financing necessary to execute on our clinical development program and European commercialization.”
DCTHD shares were trading at 95¢ apiece today in afternoon trading, down -55%.
Earlier this month, Delcath announced that it was preparing for a 1-for-350 reverse stock split, which took effect on Nov. 6.
The reverse split sent Delcath’s common stock to trade under a new symbol – DCTHD – for twenty days. According to the terms of the split, after twenty days it will revert back to its old symbol, DCTH.
The reverse split reduced the number of issued and outstanding shares of the company’s common stock from 490 million to 1.4 million shares, according to the company.
In September, Delcath and a group of investors made an end run around the company’s shareholders with a deal that paved the way for the reverse split that stockowners have twice shot down.
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