Delcath Systems Seeks Stockholders’ Nod for Reverse Stock Split to Avoid Delisting

Delcath Systems (DCTH) said on Friday its CEO Jennifer Simpson has issued a letter to stockholders to seek their approvals for the proposed reverse stock split to avoid being delisted from Nasdaq.

The drug company focusing on liver cancers proposed reverse stock split for a ratio range between 1 for 20 and 1 for 500 to provide it with maximum flexibility to adequately address two main issues that currently limit its access to capital — authorized shares limit and Nasdaq compliance.

“Should the company not obtain approval for a reverse stock split, it is likely that the company will be delisted from Nasdaq. We believe remaining on the Nasdaq provides liquidity and other benefits to the company and its investors,” Simpson said.

By Melissa Petros