Aptevo Therapeutics Announces $8 Million Offering Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

Aptevo Therapeutics (NASDAQ:APVO), a clinical-stage biotech company, has announced a registered direct offering priced at-the-market under Nasdaq rules to raise $8 million. The offering includes 2,465,000 shares of common stock or pre-funded warrants, along with warrants to purchase up to 12,325,000 shares at $3.25 per share. Each common stock share comes with five Common Warrants exercisable upon stockholder approval, with a five-year expiration term. The offering, expected to close around June 20, 2025, is being facilitated by Roth Capital Partners. Proceeds will support clinical development of product candidates, working capital, and general corporate purposes. The offering is made through a Form S-1 registration statement declared effective by the SEC.

Positive

• Secured $8 million in additional funding for clinical development and operations
• Offering priced at-the-market under Nasdaq rules, indicating market alignment
• Five-year warrant term provides long-term potential for additional capital raising

Negative

• Significant dilution potential with warrants for up to 12,325,000 additional shares
• Offering requires stockholder approval for warrant exercise
• Share offering may put downward pressure on stock price

Insights

Biotech Investment Specialist

Aptevo's $8M capital raise provides critical funding for clinical development, but comes with significant dilution through warrant structure.

Aptevo Therapeutics has secured $8 million in fresh capital through an at-the-market offering, structuring the deal as 2.465 million shares (or pre-funded warrants) plus 12.325 million warrants at $3.25 per share. This capital injection extends the company's operational runway, providing essential funding for its ADAPTIR® and ADAPTIR-FLEX® immune-oncology platform technologies.

The offering's structure reveals important nuances. Each share comes bundled with five common warrants at the same $3.25 exercise price, exercisable upon stockholder approval with a five-year term. This creates potential for significant future dilution - if all warrants are eventually exercised, the company would issue approximately 5 times more shares than in the initial offering.

This financing demonstrates continued institutional interest in Aptevo's clinical programs, with participation from healthcare-focused investors suggesting some sector-specific confidence. However, the at-market pricing indicates limited premium valuation, while the heavy warrant component suggests investors required additional upside potential to participate.

For a clinical-stage biotech without commercial products, regular capital raises are expected. This $8 million provides critical working capital for continued development of the company's immune-oncology pipeline, though the total dilution potential is substantial if all warrants are ultimately exercised. The transaction's structure balances immediate capital needs against future ownership dilution in a manner typical for clinical-stage biotechs with ongoing cash requirements.

SEATTLE, WA / ACCESS Newswire / June 18, 2025 / Aptevo Therapeutics Inc. (Nasdaq:APVO), a clinical-stage biotechnology company focused on developing novel immune-oncology therapeutics based on its proprietary ADAPTIR® and ADAPTIR-FLEX® platform technologies, today announced that it has entered into securities purchase agreements with certain healthcare-focused and institutional investors to purchase (i) 2,465,000 shares of its common stock or pre-funded warrants in lieu thereof and (ii) warrants to purchase up to an aggregate of 12,325,000 shares of its common stock (the "Common Warrants") at a purchase price of $3.25 per share and associated Common Warrants in a registered direct offering priced at-the-market under Nasdaq rules. Each share of common stock is being offered together with five Common Warrants, each to purchase one share of common stock. The Common Warrants will have an exercise price of $3.25 per share, are exercisable upon stockholder approval, and will expire five years following the date of stockholder approval.

The offering is expected to close on or about June 20, 2025, subject to customary closing conditions. Roth Capital Partners is acting as placement agent for the offering. Gross proceeds, before deducting placement agent fees and commissions and offering expenses, are expected to be approximately $8 million. The company intends to use the net proceeds from the offering for the continued clinical development of its product candidates, working capital, and other general corporate purposes.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-288061), that was declared effective by the U.S. Securities and Exchange Commission ("SEC"), on June 18, 2025. The offering is being made solely by means of a prospectus. Copies of the accompanying prospectus relating to and describing the terms of the offering may be obtained, when available, at the SEC's website at www.sec.gov or by contacting Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660 or by email at rothecm@roth.com. This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer, if at all, will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

About Aptevo Therapeutics Inc.

Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on developing novel immuno-oncology therapies for the treatment of cancer. Aptevo is seeking to improve treatment outcomes of cancer patients. For more information, please visit www.aptevotherapeutics.com.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, statements regarding the completion, timing, size and use of proceeds of the offering, the satisfaction of customary closing conditions related to the offering, Aptevo's expectations about the activity, efficacy, safety, tolerability and durability of its therapeutic candidates and potential use of any such candidates, including in combination with other drugs, as therapeutics for treatment of disease, its expectations regarding the effectiveness of its ADAPTIR and ADAPTIR-FLEX platforms, statements related to the progress of Aptevo's clinical programs, including statements related to anticipated clinical and regulatory milestones, whether further study of mipletamig in a Phase 1b dose optimization trial focusing on multiple doses of mipletamig in combination with venetoclax + azacitidine on a targeted patient population will continue to show remissions, whether Aptevo's final remission data or trial results will vary from its earlier assessment, whether Aptevo's strategy will translate into an improved overall survival in AML, especially among patient subgroups with poor prognosis, whether further study of ALG.APV-527 across multiple tumor types will continue to show clinical benefit, the possibility and timing of future preliminary or interim data readouts for ALG.APV-527, statements related to the progress of and enthusiasm for Aptevo's clinical programs, statements related to Aptevo's ability to generate stockholder value, whether Aptevo will continue to have momentum in its business in the future, and any other statements containing the words "may," "continue to," "believes," "knows," "expects," "optimism," "potential," "designed," "promising," "plans," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on Aptevo's current intentions, beliefs, and expectations regarding future events. Aptevo cannot guarantee that any forward-looking statement will be accurate. Investors should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from Aptevo's expectations. Investors are, therefore, cautioned not to place undue reliance on any forward-looking statement.

There are several important factors that could cause Aptevo's actual results to differ materially from those indicated by such forward-looking statements, including a deterioration in Aptevo's business or prospects; further assessment of preliminary or interim data or different results from later clinical trials; adverse events and unanticipated problems, adverse developments in clinical development, including unexpected safety issues observed during a clinical trial; and changes in regulatory, social, macroeconomic and political conditions. For instance, actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties inherent in the results of preliminary or interim data and preclinical studies being predictive of the results of later-stage clinical trials, initiation, enrollment and maintenance of patients, and the completion of clinical trials, the availability and timing of data from ongoing clinical trials, the trial design includes combination therapies that may make it difficult to accurately ascertain the benefits of mipletamig, expectations for the timing and steps required in the regulatory review process, expectations for regulatory approvals, the impact of competitive products, our ability to enter into agreements with strategic partners or raise funds on acceptable terms or at all and other matters that could affect the availability or commercial potential of Aptevo's product candidates, business or economic disruptions due to catastrophes or other events, including natural disasters or public health crises, geopolitical risks, including the current wars between Russia and Ukraine, Israel and Hamas, Israel and Iran, and any other military event that could evolve out of any of the current conflicts and macroeconomic conditions such as economic uncertainty, imposition of tariffs, rising inflation and interest rates, continued market volatility and decreased consumer confidence. These risks are not exhaustive, Aptevo faces known and unknown risks. Additional risks and factors that may affect results are set forth in Aptevo's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and its subsequent reports on Form 10-Q and current reports on Form 8-K. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from Aptevo's expectations in any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, Aptevo does not assume any obligation to update any forward-looking statement to reflect new information, events, or circumstances.

CONTACT:

Miriam Weber Miller
Aptevo Therapeutics
Email: IR@apvo.com or Millerm@apvo.com
Phone: 206-859-6628

SOURCE: Aptevo Therapeutics

View the original press release on ACCESS Newswire

FAQ

What is the size and price of Aptevo Therapeutics (APVO) June 2025 offering?

Aptevo Therapeutics is raising $8 million through an offering priced at $3.25 per share, including 2,465,000 shares of common stock or pre-funded warrants and warrants to purchase up to 12,325,000 additional shares.

How will APVO use the proceeds from its $8 million offering?

Aptevo plans to use the net proceeds for continued clinical development of its product candidates, working capital, and other general corporate purposes.

What are the terms of APVO's warrants in the June 2025 offering?

The warrants have an exercise price of $3.25 per share, are exercisable upon stockholder approval, and will expire five years following the date of stockholder approval.

Who is the placement agent for Aptevo's June 2025 offering?

Roth Capital Partners is acting as the placement agent for the offering.

When is APVO's June 2025 offering expected to close?

The offering is expected to close on or about June 20, 2025, subject to customary closing conditions.