SCHEDULE: Rosalind Group Amends Delcath Systems Stake, Board Roles

Rosalind Advisors and its affiliates updated their beneficial ownership in Delcath Systems, Inc., maintaining a 9.9% stake and confirming board appointments.

Summary

• Rosalind Advisors, Inc. and its affiliates (Rosalind Master Fund L.P., Rosalind Opportunities Fund I L.P.) along with Steven Salamon and Gil Aharon, collectively reported beneficial ownership in Delcath Systems, Inc.
• Rosalind Advisors, Inc., Steven Salamon, and Gil Aharon each reported a 9.9% beneficial ownership stake in Delcath Systems, Inc.
• Rosalind Master Fund L.P. reported a 4.4% stake, and Rosalind Opportunities Fund I L.P. reported a 4.9% stake.
• Beneficial ownership calculations are subject to 'blockers' (9.99% for Preferred Stock conversion and 4.99% for Warrant exercise) which prevent the reporting persons from exceeding these thresholds.
• Steven Salamon and Gilad Aharon were elected as independent directors to Delcath Systems' Board on May 6, 2020.
• Steven Salamon's term as a Class III director is scheduled to expire at the 2024 Annual Meeting of Stockholders.
• Gilad Aharon's term as a Class I director is scheduled to expire at the 2025 Annual Meeting of Stockholders.
• The percentage ownership is based on 35,313,718 shares of Common Stock outstanding as of October 27, 2025.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive update, confirming stable significant institutional ownership and board representation, which can be a stabilizing factor, but without new strategic or financial developments.

Positives

• Continued significant institutional investor interest and representation on the board, suggesting active oversight and potential strategic input.
• The presence of 'blockers' indicates a structured approach to ownership, potentially mitigating concerns about immediate large-scale conversions or exercises that could dilute existing shareholders.

Negatives

• The 'blockers' on conversion and exercise of preferred stock and warrants mean that the full potential voting power or equity upside from these instruments is currently capped for the reporting persons.

Risks

• The existence of preferred stock and warrants, even with blockers, represents potential future dilution if the blockers are removed or the company's share count increases significantly, allowing for more conversions/exercises within the percentage limits.
• The disclaimers of beneficial ownership by the Advisor and Mr. Salamon for certain shares could introduce complexity in understanding ultimate control or influence.

Future Outlook

The filing primarily details current beneficial ownership and board representation, without providing explicit forward-looking statements or guidance from the company or the reporting persons regarding future operations or financial performance.

Management Comments

• Rosalind Advisors, Inc. is the investment advisor to ROFI and RMF and may be deemed to be the beneficial owner of shares held by ROFI and RMF.
• Steven Salamon is the portfolio manager of the Advisor and may be deemed to be the beneficial owner of shares of Preferred Stock held, and underlying the Reported Warrants (subject to the Warrant Blockers) held by, RMF.
• Notwithstanding the foregoing, the Advisor and Mr. Salamon disclaim beneficial ownership of any such shares.

Industry Context

StockSavvy.ai notes that Schedule 13D filings are standard disclosures for significant ownership stakes, indicating an institutional investor's continued interest and influence in a company. For a biotechnology or medical device company like Delcath Systems, active involvement from a significant shareholder and board representation can be crucial for strategic direction and capital allocation, especially given the long development cycles and regulatory hurdles common in the sector.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: The continued significant stake and board representation by Rosalind entities may provide a degree of stability and active oversight, potentially aligning with long-term shareholder interests. The blockers limit immediate dilution from conversions.

Next Steps

• Steven Salamon's term as a Class III director is scheduled to expire at the 2024 Annual Meeting of Stockholders.
• Gilad Aharon's term as a Class I director is scheduled to expire at the 2025 Annual Meeting of Stockholders.

Key Dates

Recommendation

This Schedule 13D/A filing is an update on beneficial ownership and board representation, not a new operational or financial announcement. It confirms the continued significant stake of Rosalind Advisors and its affiliates, along with the board positions of Steven Salamon and Gilad Aharon. The presence of 'blockers' on conversion and exercise of preferred stock and warrants limits immediate dilution. As there are no new material operational developments or changes in strategic intent disclosed, a 'hold' recommendation is appropriate, reflecting the status quo of institutional involvement without new catalysts for significant price movement.

Keywords

Delcath Systems, Schedule 13D/A, Beneficial Ownership, Rosalind Advisors, Steven Salamon, Gil Aharon, Board of Directors, Preferred Stock, Warrants, Institutional Investor, Corporate Governance, Equity Stake