Delcath inks deal with convertible debt holders for short-term operating capital, reverse stock split to proceed

|About: Delcath Systems, Inc. (DCTH)|By:, SA News Editor

In a letter to shareholders, Delcath Systems (NASDAQ:DCTH) CEO Jennifer Simpson reports that the company has inked an agreement with holders of its 2016 convertible notes to exchange the notes for preferred shares and $500K in cash, providing the company with short-term operating capital.

The company also obtained consent from two shareholders that authorizes the board to institute a reverse stock split at either 1:50, 1:100 or 1:350, at the board's discretion. The reverse split will be approved once 20 calendar days have passed from the mailing date of the Schedule 14C Information Statement to shareholders.

She says the actions are necessary for company to access additional capital and continue operations.