Delcath starts exchange for warrants

New York, July 13 - Delcath Systems, Inc. said it has begun an exchange offer for the redeemable common stock purchase warrants that it issued as part of its initial public offering in 2000.

The Stamford, Conn., developer of isolated perfusion technology for organ or region-specific delivery of therapeutic agents is offering new warrants with a lower exercise price, a later expiry date and a hard call instead of a soft call.

Delcath is making the offer in light of the recent trading prices of its stock and its expected need for additional capital to continue development of its product.

The new warrants will have an exercise price of $2.75 per share instead of $6.60 for the existing warrants. The expiry will be pushed back to Dec. 31, 2005 from Oct. 18, 2005. And Delcath will be able to redeem them at $0.10 each on 30 days' notice instead of subject to its stock trading for 20 days above 150% of the exercise price, equivalent to $9.90.

For each old warrant, holders will receive one new warrant.

Delcath intends to list the new warrants on either the Nasdaq Small Cap Market or the Boston Stock Exchange.

The exchange runs through 5 p.m. ET on Aug. 15.

Delcath has 1.2 million of the warrants outstanding.

Delcath's stock closed at $2.88 Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.