Aptevo Therapeutics enacts reverse stock split to maintain Nasdaq compliance

Published 22/05/2025, 13:18
Aptevo Therapeutics enacts reverse stock split to maintain Nasdaq compliance

SEATTLE – Aptevo Therapeutics Inc. (NASDAQ:APVO), a biotechnology firm specializing in cancer immunotherapies, announced a reverse stock split of its common stock at a 1-for-20 ratio, effective May 23, 2025, at 5:01 p.m. Eastern Time. The move aims to comply with Nasdaq Capital Market listing standards. Trading on a split-adjusted basis will commence on May 27, 2025. According to InvestingPro data, the stock has experienced significant volatility, with its price falling 98% over the past year and currently trading at $0.38, well below its 52-week high of $32.93.

The reverse split was sanctioned by shareholders at a special meeting on May 14, 2025, and subsequently approved by the company’s board. This action will reduce Aptevo’s outstanding shares from approximately 13.5 million to about 0.7 million, subject to rounding adjustments and any further issuances before the effective date. The company’s financial health score is rated as WEAK on InvestingPro, with a current ratio of 0.67 indicating short-term liquidity challenges.

Every 20 shares held will convert into a single share, while the trading symbol "APVO" remains unchanged. Options, restricted stock units, warrants, and other securities will be adjusted accordingly. No fractional shares will be issued; instead, shareholders will receive a cash payment for any fractional entitlements.

The company’s proxy statement filed with the U.S. Securities and Exchange Commission on April 25, 2025, and an upcoming Form 8-K report will provide additional details.

Aptevo focuses on novel bispecific immunotherapies for cancer treatment, with two clinical candidates under evaluation. Mipletamig, designated as an orphan drug for acute myeloid leukemia, is in a Phase 1b/2 trial. ALG.APV-527 is in a Phase 1 trial for multiple solid tumor types. With a market capitalization of just $2.38 million and an EBITDA of -$23.79 million in the last twelve months, analysts do not expect profitability this year, according to InvestingPro, which offers 11 additional insights about the company’s prospects.

This announcement is based on a press release statement.

In other recent news, Aptevo Therapeutics has reported significant progress in its clinical trials for mipletamig, a treatment for acute myeloid leukemia (AML), achieving remission in 90% of frontline AML patients. The company also noted a decrease in research and development expenses, with a net loss of $6.3 million for the quarter ending March 31, 2025. Aptevo’s cash position at the end of March was $2.1 million, excluding approximately $4.9 million raised in April and May. Additionally, Aptevo has announced a common stock offering with an aggregate price of up to $3,167,548, as part of an At The Market Offering Agreement with Roth Capital Partners. The company has already sold 305,845 shares, raising approximately $181,848 in gross proceeds. In a separate announcement, Aptevo entered into a registered direct offering agreement to raise approximately $2 million, with Roth Capital Partners as the exclusive placement agent. The proceeds from these offerings are intended to support clinical development and general corporate purposes. Aptevo has also planned a securities purchase agreement for a registered direct offering of common stock shares and warrants, anticipating gross proceeds of approximately $2.1 million.

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