delcath-systemsDelcath Systems (Nasdaq:DCTH) announced today that it entered into a securities purchase agreement worth approximately $5 million.

The New York-based interventional oncology company developing treatments for primary and metastatic cancers of the liver will issue and sell 690,954 shares of common stock at a price per share of $3.98.

In lieu of shares of common stock, the company will offer 566,761 pre-funded warrants to purchase common stock at $3.97 per warrant, with an exercise price of 1¢ per share of common stock. The warrants will be immediately exercisable and remain exercisable until exercised in full, according to a news release.

Delcath expects gross proceeds of approximately $5 million, with the intention of using the funds for working capital and other general corporate purposes. The company expects the offering to close on or about July 20.

BTIG analyst Marie Thibault wrote in a report that analysts were “pleased to see Delcath was able to raise capital without issuing shares at a discount.” She said the fundraising removes some “near-term financing concerns” and extends the company’s cash runway into 2023, by which point there may be an FDA decision on the company’s Hepzato cancer treatment.

“We continue to think shares remain undervalued and think FDA approval will catalyze a rebound in the stock price,” Thibault wrote.

Shares of DCTH were up 1.1% at $3.86 per share in early-morning trading today.