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ROCKVILLE, Md. and SUZHOU, China - Ascentage Pharma Group International Inc. (NASDAQ:AAPG; HKEX:6855), which has seen its stock surge 120% over the past year according to InvestingPro data, announced Monday the pricing of 22 million ordinary shares at HKD68.60 per share in an offering by an affiliate of CEO Dajun Yang, generating approximately HKD1,509.2 million (US$192.3 million) in gross proceeds.
The placement, which was oversubscribed by eight times, is expected to close on July 17, 2025. Following the offshore placement, Yang’s affiliate will subscribe for 22 million new ordinary shares from the company at the same price.
The biopharmaceutical company, which focuses on developing treatments for cancer, plans to use the proceeds for commercialization efforts, global clinical development of pipeline candidates, and strengthening global operations. With a market capitalization of $3.34 billion and last twelve months revenue of $134.35 million, the company currently operates with moderate debt levels. InvestingPro analysis reveals 12 additional key insights about the company’s financial health and growth prospects.
The shares were offered in an offshore transaction outside the United States to non-U.S. persons under Regulation S of the Securities Act. Representatives from the company’s January 2025 U.S. initial public offering waived lock-up restrictions for the placement shares.
Ascentage’s lead asset, olverembatinib, is a BCR-ABL1 inhibitor approved in China for treating certain types of chronic myeloid leukemia. The company is conducting global Phase III trials for this drug. Its second lead asset, lisaftoclax, recently received approval from China’s National Medical Products Administration for treating relapsed and/or refractory chronic lymphocytic leukemia and small lymphocytic lymphoma.
The company noted that the placement shares have not been registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from registration requirements. While the company maintains a strong gross profit margin of 97%, InvestingPro data shows it is not yet profitable, with an EBITDA of -$40.95 million in the last twelve months.
This announcement is based on a press release statement from the company.
In other recent news, Ascentage Pharma Group International has filed its annual report for the fiscal year ending December 31, 2024, with the United States Securities and Exchange Commission. This filing includes the company’s Environmental, Social, and Governance Report for 2024, which complies with the requirements of The Stock Exchange of Hong Kong Limited Listing Rules. The report underscores Ascentage Pharma’s dedication to sustainable business practices and social responsibility. Additionally, Ascentage Pharma has announced its Annual General Meeting for shareholders on May 19, 2025. The meeting’s agenda includes the proposed re-election of retiring directors and the granting of general mandates to issue and repurchase shares. Shareholders have been provided with a Notice of Annual General Meeting and a Form of Proxy to participate in the decision-making process. These developments are part of the company’s Form 6-K filing with the SEC, ensuring transparency regarding its operations and strategic direction.
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