Delcath Systems share offering raises $32 million

AP News
Posted: Nov 18, 2009 3:17 PM

Delcath Systems Inc., a developer of a cancer-drug delivery device, said Wednesday it raised $32.4 million in net proceeds from a public stock offering.

The figure is above the $30.6 million that the New York-based company had estimated Nov. 13 when it announced the pricing for the offer.

The offering of nearly 9.8 million common shares at $3.60 apiece included nearly 1.3 million shares sold upon exercise by the underwriters under their overallotment option. All shares in the offering were sold by Delcath Systems, which plans to use proceeds for general corporate purposes, including regulatory approval, clinical trials, capital expenditures and working capital. The company is developing a drug-delivery device to treat cancers of the liver.

Cowen and Co. acted as the offering's book-running manager, with Canaccord Adams, Wedbush PacGrow Life Sciences and Craig-Hallum Capital Group as co-managers.

Delcath shares fell 6 cents to $4.19 in afternoon trading.