Delcath Systems

Canaccord Genuity Acted as Sole Placement Agent to Delcath Systems on its Private Placement

Delcath Systems, Inc. (Nasdaq: DCTH) (the “Company” or “Delcath”), an interventional oncology company focused on the treatment of primary and metastatic cancers of the liver, yesterday announced that the Company has closed a financing with certain healthcare-focused institutional investors that provides up to $85 million in gross proceeds to Delcath through a private placement that includes initial upfront funding of $25 million. Canaccord Genuity acted as sole placement agent to Delcath Systems on its private placement.

The financing was led by Vivo Capital with participation from Logos Capital, BVF Partners LP, Stonepine Capital Management, LLC, Serrado Capital LLC and supported by existing investor, Rosalind Advisors.

Pursuant to the securities purchase agreements, the Company issued purchasers (i) an aggregate $24.9 million in shares of the Company’s Series F Convertible Preferred Stock and (ii) two tranches of warrants that are exercisable for shares of the Company’s Series F Convertible Preferred Stock as follows:

• Tranche A warrants for an aggregate exercise price of approximately $34.9 million are exercisable until the earlier of 3/31/2026 or 21 days following the Company’s announcement of receipt of FDA approval for HEPZATO; and
• Tranche B warrants for an aggregate exercise price of approximately $24.9 million are exercisable until the earlier of 3/31/2026 or 21 days following disclosure of the Company’s public announcement of recording at least $10 million in quarterly U.S. revenue from the commercialization of HEPZATO.

Shares of Series F Convertible Preferred Stock were issued at a price of $1,000.00 per share. Conversion of the Series F Convertible Preferred Stock into shares of common stock of the Company, and the exercisability of the warrants, is subject to approval by the Company’s stockholders. Pursuant to a separate securities purchase agreement, the Company issued to a certain purchaser (i) an aggregate of $0.1 million in shares of the Company’s common stock and (ii) the Tranche A and Tranche B warrants to purchase shares of common stock. All of the securities in this private placement were offered by Delcath.

Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. The company's proprietary percutaneous hepatic perfusion (PHP) system is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In the United States, the PHP system is being developed under the tradename HEPZATO KIT (melphalan hydrochloride for injection/hepatic delivery system), or HEPZATO, for the treatment of patients with unresectable hepatic-dominant metastatic ocular melanoma (mOM), also known as metastatic uveal melanoma (mUM) and is considered a combination drug and device product regulated by the United States Food and Drug Administration (FDA).

In Europe, the PHP system is now regulated as a Class lll medical device and is approved for sale under the trade name CHEMOSAT Hepatic Delivery System for Melphalan, or CHEMOSAT, where it has been used at major medical centers to treat a wide range of cancers of the liver.

The Canaccord Genuity team consisted of Eugene Rozelman, Jennifer Pardi, Brian O’Connor,  Tara Hartigan, Meredith Sondler-Bazar, ​​​​​​​ Mike Wright, Esther Lee, Brooke Szczygiel, Calvin Reif, Sean Pritchett, and William Jones.