Delcath Systems, Inc. Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Delcath Systems (Nasdaq: DCTH), an interventional oncology company specializing in liver cancer treatments, has announced equity inducement grants to six new employees who joined in January and February 2025. The grants include options to purchase 264,000 shares of common stock under the company's 2023 Inducement Plan.

The stock options were granted on February 28, 2025, with an exercise price of $14.17 per share, matching the closing price of Delcath's common stock on that date. The vesting schedule includes one-third of options vesting after the first year, with the remaining two-thirds vesting in equal monthly installments over 24 months. The options have a ten-year term and require continued employment for vesting.

Positive

• Successful recruitment of six new employees indicating company growth
• Implementation of equity-based compensation to align employee interests with shareholders

Negative

• Potential dilution of existing shareholders from 264,000 new stock options

QUEENSBURY, N.Y.--(BUSINESS WIRE)-- 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, announces that the Company granted equity awards, previously approved by the Company’s Compensation Committee, as material inducements to six individuals whose employment commenced in January and February of 2025.

The grants resulted in the right to purchase 264,000 shares of the Company’s common stock and are subject to the terms and conditions of the Company’s 2023 Inducement Plan (“Plan”). The options were granted on February 28, 2025, the date the Compensation Committee approved the stock option included within the equity inducements and are subject to an exercise price equal to $14.17, the closing price of Delcath’s common stock on February 28, 2025. One-third of the options will vest on the first anniversary of the grant date with the remaining two-thirds of the options vesting in equal monthly installments over the following twenty-four months. The options have a ten-year term and the vesting of the options are subject to the employee’s continued employment with Delcath on each vesting date.

The above-described awards were granted in accordance with Nasdaq Listing Rule 5635(c)(4) and granted pursuant to the terms of the Plan.

About Delcath Systems, Inc.
Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. The company’s proprietary products, HEPZATO KIT™ (HEPZATO (melphalan) for Injection/Hepatic Delivery System) and CHEMOSAT^® Hepatic Delivery System for Melphalan percutaneous hepatic perfusion (PHP), are designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects during a PHP procedure.

In the United States, HEPZATO KIT is considered a combination drug and device product and is regulated and approved for sale as a drug by the FDA. HEPZATO KIT is comprised of the chemotherapeutic drug melphalan and Delcath's proprietary Hepatic Delivery System (HDS). The HDS is used to isolate the hepatic venous blood from the systemic circulation while simultaneously filtrating hepatic venous blood during melphalan infusion and washout. The use of the HDS results in loco-regional delivery of a relatively high melphalan dose, which can potentially induce a clinically meaningful tumor response with minimal hepatotoxicity and reduce systemic exposure. HEPZATO KIT is approved in the United States as a liver-directed treatment for adult patients with metastatic uveal melanoma (mUM) with unresectable hepatic metastases affecting less than 50% of the liver and no extrahepatic disease, or extrahepatic disease limited to the bone, lymph nodes, subcutaneous tissues, or lung that is amenable to resection or radiation. Please see the full Prescribing Information, including BOXED WARNING for the HEPZATO KIT.

In Europe, the device-only configuration of the HDS is regulated as a Class III medical device and is approved for sale under the trade name CHEMOSAT Hepatic Delivery System for Melphalan, or CHEMOSAT, where it has been used in the conduct of percutaneous hepatic perfusion procedures at major medical centers to treat a wide range of cancers of the liver.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250314119944/en/

Investor Relations:

ICR Westwicke

investorrelations@delcath.com

Source: Delcath Systems, Inc.

FAQ

What is the exercise price for Delcath's (DCTH) February 2025 inducement stock options?

The exercise price is $14.17, equal to Delcath's closing stock price on February 28, 2025.

How many shares are included in Delcath's (DCTH) February 2025 inducement grants?

The inducement grants include options to purchase 264,000 shares of common stock.

What is the vesting schedule for Delcath's (DCTH) February 2025 inducement options?

One-third vests after one year, with remaining two-thirds vesting monthly over 24 months, subject to continued employment.

How long is the term for Delcath's (DCTH) February 2025 inducement stock options?

The stock options have a ten-year term.