FOSTER CITY, Calif. - Apollomics Inc. (NASDAQ:APLM), a clinical-stage biopharmaceutical company, has announced a 1-for-100 reverse share split of its class A ordinary shares. The reverse split will take effect at the start of trading on November 25, 2024, on the Nasdaq Stock Market.
The decision for the reverse split was approved by shareholders at the Extraordinary General Meeting on November 14, 2024. Following the reverse split, every 100 existing class A ordinary shares will be consolidated into one new share. The company's authorized share capital will increase from 6,500,000 shares to 130,000,000 shares, which includes 100,000,000 new class A ordinary shares, 20,000,000 class B ordinary shares, and 10,000,000 preference shares, each with a par value of $0.01.
Apollomics' warrants will also be adjusted as a result of the reverse split. The exercise price for each public warrant will be $1,150.00 post-split, adjusted from the pre-split price of $11.50. The company's lead program, vebreltinib (APL-101), a c-Met inhibitor, is currently undergoing a Phase 2 multicohort clinical trial for non-small cell lung cancer and other advanced tumors with c-Met alterations.
This strategic move is intended to adjust the number of shares outstanding and is a common practice among public companies. The reverse split does not change the company's market capitalization but may affect stock liquidity and investor perception.
The information regarding the reverse split and its implications is based on a press release statement from Apollomics Inc.
InvestingPro Insights
As Apollomics Inc. (NASDAQ:APLM) prepares for its reverse stock split, recent InvestingPro data provides additional context to the company's financial situation. Despite the upcoming consolidation of shares, APLM's market capitalization stands at a modest $16.52 million, reflecting its current position in the biopharmaceutical sector.
The company's financial health presents a mixed picture. An InvestingPro Tip highlights that APLM holds more cash than debt on its balance sheet, which could be crucial for funding its ongoing clinical trials, including the Phase 2 study of vebreltinib. However, another InvestingPro Tip warns that the company is quickly burning through cash, a common scenario for clinical-stage biotech firms investing heavily in research and development.
APLM's revenue growth is noteworthy, with a 70.54% increase over the last twelve months as of Q2 2024, and an impressive 262.3% quarterly growth in Q2 2024. This growth trajectory aligns with the company's focus on advancing its pipeline, particularly its lead program vebreltinib.
Despite these positive indicators, it's important to note that APLM is not currently profitable, as indicated by another InvestingPro Tip. The company's operating income margin stands at -2531.08% for the last twelve months, underscoring the significant costs associated with drug development and clinical trials.
The reverse stock split comes at a time when APLM's stock has experienced volatility. While there's been a significant 43.21% return over the last week, the stock has fallen 51.83% over the past six months and 81.32% over the last year. This context helps explain the company's decision to implement the reverse split, potentially aiming to improve its stock profile and attract new investors.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for APLM, providing a more comprehensive view of the company's financial health and market position.
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