SEATTLE - Aptevo Therapeutics Inc . (NASDAQ:APVO), a biotechnology firm specializing in pharmaceutical preparations, announced a reverse stock split of its common stock, effective as of Tuesday.
The announcement comes as the company's stock has declined about 97% year-to-date, according to InvestingPro data, with shares trading at $0.23 and a market capitalization of just $4.44 million.
The reverse stock split was previously approved by the company's Board of Directors on October 25, 2024, following authorization from stockholders at a Special Meeting.
The reverse stock split, occurring at a ratio of 1-for-37, consolidates every 37 shares of issued and outstanding common stock into one share. This action does not alter the par value per share.
The company's common stock will begin trading on a split-adjusted basis when markets open on Wednesday, December 4, 2024, with the new CUSIP number 03835L 405.
InvestingPro analysis indicates the company's overall financial health score is weak at 1.57, with particularly concerning metrics in profitability and price momentum.
The adjustment also proportionately affects the per share exercise price and the number of shares issuable upon the exercise or vesting of all outstanding stock options, restricted stock units, and warrants.
Consequently, there will be a proportional decrease in the number of shares reserved for issuance upon exercise or vesting of such options, units, and warrants, and a proportional increase in their exercise price.
Aptevo has stated that no fractional shares will be issued. Shareholders entitled to a fractional share will receive a cash payment instead. Warrant holders will be rounded up to the next whole share. The reverse stock split is applied uniformly to all shareholders and does not change any shareholder's percentage ownership of the company's common stock, except for adjustments due to fractional share holdings.
This corporate action is detailed in the company's latest 8-K filing with the Securities and Exchange Commission. The filing includes the Certificate of Amendment of Amended and Restated Certificate of Incorporation, which formalizes the reverse stock split. With a high beta of 5.01, InvestingPro data shows the stock exhibits significant volatility compared to the broader market. Subscribers can access 11 additional ProTips and comprehensive financial metrics to better understand the company's positioning and potential risks.
Aptevo Therapeutics, headquartered in Seattle, Washington, operates under the organization name 03 Life Sciences and is incorporated in Delaware. The company's fiscal year ends on December 31. The information provided is based on a press release statement.
In other recent news, Aptevo Therapeutics has reported significant progress in various areas. The company announced a 1-for-37 reverse stock split aimed at compliance with Nasdaq Capital Market's minimum bid price requirement.
The stockholder-approved decision will convert every 37 shares of common stock into one share, reducing the outstanding common stock from approximately 18.5 million shares to around 0.5 million.
In collaboration with Alligator Bioscience, Aptevo has made significant strides 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.
The company also 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. Aptevo 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. These recent developments reflect Aptevo's strategic plans and potential changes in its financial and operational framework.
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