Aptevo Therapeutics announces 1-for-37 reverse stock split

SEATTLE - Aptevo Therapeutics Inc . (NASDAQ:APVO), a clinical-stage biotechnology company with a current market capitalization of $6.2 million according to InvestingPro data, has announced a reverse stock split of its common stock at a ratio of 1-for-37, set to take effect on December 3, 2024, at 5:01 p.m. Eastern Time. The company's shares are expected to begin trading on a split-adjusted basis on the Nasdaq Capital Market at the market open on December 4, 2024.

This corporate action will convert every 37 shares of issued and outstanding common stock into one share, without altering the trading symbol "APVO". The reverse split aims to help Aptevo Therapeutics comply with the Nasdaq Capital Market's minimum bid price requirement of $1.00 per share, which is necessary for continued listing. The move comes as the stock has experienced significant volatility, with InvestingPro data showing a 95.66% decline year-to-date and a current trading price of $0.31. InvestingPro subscribers have access to 12 additional key insights about APVO's financial health and market performance.

The decision for the reverse stock split was approved by stockholders during a special meeting held on October 25, 2024, and subsequently finalized by the company's board on the same day. The consolidation will reduce Aptevo's outstanding common stock from approximately 18.5 million shares to around 0.5 million shares, subject to rounding adjustments and any additional issuances before the effective date. According to InvestingPro analysis, while the company maintains more cash than debt on its balance sheet, it currently shows a weak overall financial health score of 1.75 out of 5.

The reverse split will affect all of the company's issued and outstanding common stock, as well as outstanding options, restricted stock units, warrants, and other securities. The number of shares reserved for the company's equity incentive plans will also be adjusted accordingly. No fractional shares will be issued as a result of the reverse split; stockholders who would otherwise receive a fraction of a share will be rounded up to the nearest whole share.

Further details about the reverse stock split can be found in Aptevo's definitive proxy statement filed with the U.S. Securities and Exchange Commission on October 3, 2024, and in a forthcoming Current Report on Form 8-K to be filed after the reverse split becomes effective.

Aptevo Therapeutics focuses on developing novel bispecific immunotherapies for cancer treatment. The information provided in this article is based on the company's press release statement.

In other recent news, Aptevo Therapeutics, in collaboration with Alligator Bioscience, has reported progress in their ongoing clinical trials for cancer treatment candidates. Their lead candidate, mipletamig, showed a promising initial efficacy response in a Phase 1b/2 trial, with a 90% reduction in leukemic blasts within a patient 30 days after treatment began. Another clinical candidate, ALG.APV-527, indicated favorable safety and tolerability in a Phase 1 trial, with 56% of evaluable patients achieving stable disease.

In addition to these clinical developments, Aptevo secured shareholder approval for significant corporate actions such as the issuance of a substantial number of Common Stock shares and a potential reverse stock split. The company also raised $2.3 million in a direct offering and set the terms for a $4.6 million public offering.

Roth/MKM revised Aptevo's stock price target to $8.00, maintaining a Buy rating. Despite potential risks such as clinical trial outcomes, regulatory processes, and market conditions, these recent developments reflect Aptevo's strategic plans and potential changes in its financial and operational framework.

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