Aptevo Therapeutics Announces 1-for 44 Reverse Stock Split As Part of Nasdaq Compliance Plan
Aptevo Therapeutics Inc. (NASDAQ:APVO) announced a 1-for-44 reverse stock split to regain Nasdaq compliance, reducing outstanding shares from 23.5 million to approximately 0.53 million. The split aims to maintain a minimum bid price of $1.00 per share and will not change the trading symbol 'APVO'.
The reverse stock split by Aptevo Therapeutics represents a strategic move to address compliance issues with Nasdaq's minimum bid price requirement. From a financial perspective, this maneuver is often employed by companies seeking to lift their stock price to meet exchange listing standards and avoid delisting. It is essential to understand that while the reverse split increases the price per share, it does not inherently change the company's market capitalization or its intrinsic value.
Investors should be attentive to the dilutive effect of such corporate actions. Although the number of shares decreases, the value of each investor's holding remains the same, barring any market reaction. Historically, the market's response to reverse splits can be mixed, as they may be perceived as a sign of trouble or a lack of positive avenues for growth. In the short-term, volatility in the stock price could be expected as the market assimilates the new share structure.
Examining the broader implications of Aptevo's reverse stock split, it's crucial to consider investor sentiment and market perception. Reverse splits can sometimes be viewed negatively by the market, as they may indicate that a company has been struggling to meet exchange listing requirements. However, they can also be interpreted as a proactive step by management to improve the stock's appeal to institutional investors and to maintain the company's listing status, which can be critical for future capital raising efforts.
It's important to monitor the stock's trading volume and price movements post-split to gauge investor confidence. An increase in trading volume with stable or rising prices may suggest market approval, while a decline could indicate the opposite. Additionally, the adjustment of equity incentive plans and the treatment of fractional shares could have implications for employee compensation and investor relations.
From a legal standpoint, the reverse stock split by Aptevo Therapeutics has been executed following shareholder approval and in compliance with SEC regulations. The company has adhered to the necessary legal framework by filing the definitive proxy statement and planning to file a Current Report on Form 8-K post-effective time. It's important for investors to review these documents for a comprehensive understanding of the reverse split's terms and conditions, including the treatment of fractional shares and the adjustments to outstanding securities.
Legal compliance ensures transparency and protects shareholder interests during such corporate actions. The lack of changes to the authorized number of shares of common and preferred stock suggests that the company is not currently planning to issue additional shares, which could otherwise lead to further dilution of existing shareholders' interests.
03/04/2024 - 09:00 AM
SEATTLE, WA / ACCESSWIRE / March 4, 2024 / Aptevo Therapeutics Inc. (NASDAQ:APVO) ("Aptevo " or the "Company "), today announced that it will conduct a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-44 (the "Reverse Stock Split "). The Reverse Stock Split is expected to become effective on March 5, 2024 at 5:01 p.m. Eastern Time (the "Effective Time "), with shares expected to begin trading on the Nasdaq Capital Market, on a split-adjusted, at market open on March 6, 2024. In connection with the Reverse Stock Split, every 44 shares of the Company's common stock issued and outstanding as of the Effective Time will be automatically converted into one share of the Company's common stock. No change will be made to the trading symbol for the Company's shares of common stock or public warrants, "APVO" and "APVTW", respectively, in connection with the reverse split.
The Reverse Stock Split is part of the Company's plan to regain compliance with the minimum bid price requirement of $1.00 per share required to maintain continued listing on The Nasdaq Capital Market, among other benefits.
The Reverse Stock Split was approved by the Company's stockholders at the Company's Special Meeting of Stockholders held on February 5, 2024 (the "Special Meeting ") to be effected in the Board's discretion within approved parameters. Following the Special Meeting, the final ratio was approved by the Company's Board on February 27, 2024.
The Reverse Stock Split will reduce the number of shares of the Company's outstanding common stock from approximately 23.5 million shares (as of the date of this press release, when including issuances in process) to approximately 0.53 million shares, subject to adjustment for rounding, as discussed below and potential additional issuances through the effective date of the Reverse Stock Split.
The reverse split will affect all issued and outstanding shares of common stock. All outstanding options, restricted stock units, warrants, and other securities entitling their holders to purchase or otherwise receive shares of common stock will be adjusted as a result of the reverse split, as required by the terms of each security. The number of shares available to be awarded under the Company's equity incentive plans will also be appropriately adjusted. Following the reverse split, the par value of the Common Stock will remain unchanged at $0.00 1 par value per share. The reverse split will not change the authorized number of shares of common stock or preferred stock. No fractional shares will be issued in connection with the reverse split, and stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment in lieu of such fractional share.
Additional information regarding the reverse stock split is available in the Company's definitive proxy statement originally filed with the U.S. Securities and Exchange Commission (SEC) on December 22, 2023, supplements to proxy statement filed with the SEC on January 16, 2024 and January 30, 2024 and a Current Report on Form 8-K which the Company plans to file following the Effective Time.
About Aptevo Therapeutics
Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on developing novel bispecific immunotherapies for the treatment of cancer. Aptevo is seeking to improve treatment outcomes and transform the lives of cancer patients. For more information, please visit www.aptevotherapeutics.com .
Forward-Looking Statements
This press release includes "forward-looking statements", including information about management's view of the Company's future expectations, plans and prospects, within the safe harbor provisions provided under federal securities laws, including under The Private Securities Litigation Reform Act of 1995 (the "Act"). Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, our ability to continue as a going concern; our plans to develop and commercialize our drug candidates; our ability to become profitable; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to maintain and establish collaborations or obtain additional funding; our ability to obtain regulatory approval of current and future drug candidates; our expectations regarding our ability to fund operating expenses and capital expenditure requirements with our existing cash and cash equivalents, and future expenses and expenditures; our ability to secure sufficient funding and alternative source of funding to support when needed and on terms favorable to us to support our business objective, product development, other operations or commercialization efforts; the success of our clinical development activities, clinical trials and research and development programs; our ability to retain key employees, consultants and advisors; our ability to obtain, maintain, protect and enforce sufficient intellectual property rights for our candidates and technology; our anticipated strategies and our ability to manage our business operations effectively; the impact of legislative, regulatory or policy changes; and the possibility that we may be adversely impacted by other economic, business, and/or competitive factors. These risk factors and others are included from time to time in documents the Company files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks, and including the Annual Report on Form 10-K for the year ended December 31, 2023, and future SEC filings. These reports and filings are available at www.sec.gov and are available for download, free of charge, soon after such reports are filed with or furnished to the SEC, on the "Investors" page of our website at www.apvotherapeutics.com. All subsequent written and oral forward-looking statements concerning the Company, the results of the Company's clinical trial results and studies or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, including the forward-looking statements included in this press release, which are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise provided by law.
Contact:
Miriam Weber MillerIR@apvo.com or Millerm@apvo.com
SOURCE: Aptevo Therapeutics
press release on accesswire.com
What is the reverse stock split ratio announced by Aptevo Therapeutics Inc. (NASDAQ:APVO)?
Aptevo Therapeutics Inc. (NASDAQ:APVO) announced a reverse stock split at a ratio of 1-for-44.
When is the Reverse Stock Split expected to become effective for Aptevo Therapeutics Inc. (NASDAQ:APVO)?
The Reverse Stock Split is expected to become effective on March 5, 2024 at 5:01 p.m. Eastern Time.
Why is Aptevo Therapeutics Inc. (NASDAQ:APVO) conducting a reverse stock split?
Aptevo Therapeutics Inc. (NASDAQ:APVO) is conducting a reverse stock split to regain compliance with the minimum bid price requirement of $1.00 per share on The Nasdaq Capital Market.
What was the final ratio approved by the Board of Aptevo Therapeutics Inc. (NASDAQ:APVO) for the reverse stock split?
The final ratio of 1-for-44 for the reverse stock split was approved by the Board of Aptevo Therapeutics Inc. (NASDAQ:APVO) on February 27, 2024.
Will the trading symbol for Aptevo Therapeutics Inc. (NASDAQ:APVO) change due to the reverse split?
No, the trading symbol for Aptevo Therapeutics Inc. (NASDAQ:APVO) shares of common stock, 'APVO', will not change in connection with the reverse split.
