Affimed Announces 1-for-10 Reverse Stock Split
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Insights
A reverse stock split is a mechanism used by companies to consolidate the number of existing shares into fewer, proportionally more valuable shares. Affimed's decision to implement a 1-for-10 reverse stock split is a strategic move to address NASDAQ's minimum share price requirement for continued listing. This action could potentially reduce the risk of delisting, which often has negative connotations for investor confidence and can affect liquidity.
From a financial perspective, the reverse stock split does not inherently change the company's market capitalization but can lead to a perceived increase in stock value, albeit without altering the company's underlying fundamentals. However, it's essential to monitor the stock's performance post-split as it can sometimes lead to reduced market interest if the split is viewed negatively by investors.
Shareholders should be aware that while they will not lose value through the split itself, the issuance of cash in lieu of fractional shares may have minor tax implications. Overall, the reverse stock split is a tactical maneuver that may align the company's stock with institutional investor standards, potentially attracting a new segment of investors.
Reverse stock splits often carry a stigma, as they are typically associated with companies in distress trying to meet exchange listing requirements. However, in the biotech and pharmaceutical industries, where companies like Affimed operate, stock prices can be volatile due to the nature of clinical trials and regulatory approvals. Thus, the reverse stock split could serve as a temporary measure to stabilize stock price while the company progresses through its clinical pipeline.
It is also worth considering the broader market implications. A successful reverse split that leads to sustained compliance with NASDAQ's listing requirements can contribute to the company's reputation and investor appeal. The market's reception of the reverse stock split will be critical in determining its impact on Affimed's stock liquidity and attractiveness to institutional investors.
Long-term, the company's ability to maintain a share price above the NASDAQ threshold organically, through successful clinical developments and strategic partnerships, will be more indicative of its market position and growth potential.
The reverse stock split is a legal procedure that requires shareholder approval, as evidenced by the vote at Affimed's Annual General Meeting of Shareholders. The company has fulfilled its regulatory obligations by filing the necessary proxy materials with the SEC, ensuring transparency and adherence to securities laws.
Investors should be cognizant of the legal framework that governs such corporate actions, including the rights to receive cash in lieu of fractional shares. The legal process behind the reverse stock split is designed to protect shareholders' interests and Affimed's compliance with these procedures reflects its commitment to corporate governance.
Furthermore, the company's clear communication about the reverse stock split on its Investor Relations website is a positive indication of its dedication to shareholder communication and legal compliance.
MANNHEIM, Germany, March 06, 2024 (GLOBE NEWSWIRE) -- Affimed N.V. (Nasdaq: AFMD) (“Affimed” or the “Company”), a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer, announced that the Company, with prior approval of the Company’s supervisory board and management board, intends to effect a 1-for-10 reverse stock split of its outstanding common shares, par value
The reverse stock split is expected to be effected after market close on March 8, 2024, with the Common Shares expected to begin trading on the Nasdaq Capital Market (“NASDAQ”) on a post-split basis at market open on March 11, 2024 under the Company’s existing trading symbol “AFMD.”
No fractional shares will be issued in connection with the reverse stock split. Shareholders that would hold a fractional share as a result of the reverse stock split will receive a cash payment in lieu of such fractional shares.
The reverse stock split was approved by the Company’s shareholders at the Company’s Annual General Meeting of Shareholders held on June 21, 2023 and is intended to bring the Company into compliance with the minimum
Additional information concerning the reverse stock split can be found in Affimed’s proxy materials filed with the Securities and Exchange Commission (the “SEC”) on May 22, 2023 and June 22, 2023, as well as on Affimed’s Investor Relations website, https://www.affimed.com/investors/.
About Affimed N.V.
Affimed (Nasdaq: AFMD) is a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer by actualizing the untapped potential of the innate immune system. The Company’s innate cell engagers (ICE®) enable a tumor-targeted approach to recognize and kill a range of hematologic and solid tumors. ICE® are generated on the Company’s proprietary ROCK® platform which predictably generates customized molecules that leverage the power of innate immune cells to destroy tumor cells. A number of ICE® molecules are in clinical development, being studied as mono- or combination therapy. Headquartered in Mannheim, Germany, Affimed is led by an experienced team of biotechnology and pharmaceutical leaders united by the bold vision to stop cancer from ever derailing patients’ lives. For more about the Company’s people, pipeline and partners, please visit: www.affimed.com.
Forward-Looking Statement
This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “look forward to,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions. Forward-looking statements appear in a number of places throughout this release and include statements regarding the Company’s intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, the potential of acimtamig (AFM13), AFM24, AFM28 and the Company’s other product candidates, the value of its ROCK® platform, its ongoing and planned clinical trials, its collaborations and development of its products in combination with other therapies, the timing of and its ability to make regulatory filings and obtain and maintain regulatory approvals for its product candidates, its intellectual property position, its collaboration activities, its ability to develop commercial functions, clinical trial data, its results of operations, cash needs, financial condition, liquidity, prospects, future transactions, growth and strategies, the industry in which it operates, the macroeconomic trends that may affect the industry or the Company, such as the instability in the banking sector experienced in the first quarter of 2023, impacts of the COVID-19 pandemic, the benefits to Affimed of orphan drug designation, the impact on its business by political events, war, terrorism, business interruptions and other geopolitical events and uncertainties, such as the Russia-Ukraine conflict, the fact that the current clinical data of acimtamig in combination with NK cell therapy is based on acimtamig precomplexed with fresh allogeneic cord blood-derived NK cells from The University of Texas MD Anderson Cancer Center, as opposed to Artiva’s AB-101 and other uncertainties and factors described under the heading “Risk Factors” in Affimed’s filings with the SEC. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements, and the Company assumes no obligation to update these forward-looking statements, even if new information becomes available in the future.
Investor Relations Contact
Alexander Fudukidis
Director, Investor Relations
E-Mail: a.fudukidis@affimed.com
Tel.: +1 (917) 436-8102
FAQ
What is the reverse stock split ratio announced by Affimed N.V.?
When is the reverse stock split expected to be effected?
What is the purpose of the reverse stock split?
Will fractional shares be issued in connection with the reverse stock split?
When will the Common Shares begin trading on NASDAQ on a post-split basis?
