Delcath Systems, Inc. (NASDAQ: DCTH)
I’ve written about Delcath Systems quite a bit as of late, and while I like what the company is doing in the oncology space, I have to say, the countless complaints that I am getting are causing some major concern. Ultimately, these complaints have quite a bit to do with the fact that the company wants a reverse stock split, but how they are going about trying to get approval is not good. Apparently, the company has resorted to harassing shareholders after their attempts at getting an approval for a reverse stock split have failed thus far. At the moment (8:51), DCTH is trading at $0.11 per share after a gain of 2.14% thus far this morning.
Is DCTH Harassing Shareholders?
If you look at the featured image for this article above, you’ll see an inside look at my Stock Twits inbox… at least 2 messages there at the top of the inbox. The reality is that these two messages aren’t the only 2. Over the weekend I’ve received a massive number of messages from angry shareholders stating that Delcath Systems is doing the wrong thing here. So, what are they doing?
Well, if the shareholders that are sending me messages are correct, there’s no better way to say it… DCTH seems to be bullying and harassing investors, trying to get them to vote yes on the reverse split. Do they need the reverse split? Absolutely; it would help the company tremendously! However, this isn’t the way to go about it!
In my Stock Twits inbox, I’ve received several messages stating that reps from DCTH have called them on multiple occasions. While I have not personally received any of these calls (I’m not a shareholder as I don’t invest in anything I write about to avoid a biased view), many shareholders have said that the company isn’t simply asking for approval, nor politely going about informing investors of why a RS would be a good idea. Instead, if those contacting me are correct, these representatives are acting as bullies. In fact, many have said they have recorded some of these phone calls. If you are one of these investors, please send your recordings to CNAFinanceHelp@gmail.com. I would love to hear just how they are attempting to push investors into voting for the RS.
News Comes Soon
I’ve never seen a company bully and attempt to manipulate its shareholders. So, I have to say, when I woke up this morning and saw my inbox, I was pretty surprised. Nonetheless, while I don’t agree with the bullying and belittling of shareholders, it is my opinion that DCTH needs a reverse split. Ultimately, the company is in a tough financial position, and it may be forced to sell assets if the RS does not happen. At the end of the day, if a RS was to go through, it would open the door to $13.7 million in funding and wipe out a pretty big chunk of debt. Without that, the financial data on the company suggests that the company may just not survive. By September 7th, news will be released with regard to whether the vote was a yes or a no vote. Nonetheless, regardless of how bad it is needed, shareholders deserve respect. They should look up to those in the company, not see them as bullies!
Honestly, my views on Delcath Systems haven’t quite aligned with shareholders in many ways. While shareholders don’t want the dilution, I believe that a reverse stock split would be positive in the long run. However, regardless of this belief, there is one thing that I believe shareholders and myself are perfectly aligned on. That is the fact that DCTH, nor any other company, should use bullying and other aggressive tactics against their shareholders. I hope someone higher up is reading this so that the issue is addressed. While I’m not sure how DCTH can resolve the actions of the bullies in the call center that seems to be harassing its investors, now is the time to attempt to make things right!
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