Aptevo Therapeutics Announces $2.75 Million Offering Priced At-the-Market Under Nasdaq Rules
Aptevo Therapeutics (Nasdaq: APVO) announced a $2.75 million securities offering priced at-the-market under Nasdaq rules. The offering includes 5,339,806 shares of common stock or pre-funded warrants and warrants to purchase 10,679,612 shares at $0.515 per share. The offering is expected to close around July 1, 2024, with gross proceeds estimated at $2.3 million. The net proceeds will be used for clinical development, working capital, and general corporate purposes. Additionally, existing warrants issued in August 2023, November 2023, and April 2024 will be amended to have a reduced exercise price of $0.515 per share.
- Aptevo secures $2.75 million in new funding.
- Gross proceeds of $2.3 million expected from the offering.
- Funds to support clinical development and operational needs.
- Existing warrants' exercise prices reduced, potentially affecting shareholder value.
- Stockholder approval needed for warrant exercisability, adding a layer of uncertainty.
Insights
Aptevo Therapeutics’ recent announcement of a $2.75 million offering priced at-the-market under Nasdaq rules is a significant move for the company. This issuance primarily involves the sale of 5,339,806 shares of common stock or pre-funded warrants, paired with warrants to purchase an additional 10,679,612 shares, all priced at
From a financial standpoint, it's important to note that the gross proceeds of
The rationale behind this offering seems to be the need for working capital and to support the clinical development of their product candidates. However, the relatively low pricing and the need to amend previous warrants reflect the company's current cash constraints and potentially limited access to capital markets. Retail investors should be cautious as this indicates potential dilution and reflects the company's current financial health.
For retail investors, the key takeaway is that while this offering provides immediate funds for necessary operations, it may signal underlying financial strain and dilution risks. The long-term impact hinges on the success of their clinical trials and ability to effectively utilize these funds.
The offering by Aptevo Therapeutics is designed to be appealing to healthcare-focused and institutional investors. This targeted approach is smart because it aligns with the company's core strength in developing immune-oncology therapeutics, an area of substantial interest among niche investors. The pairing of each share with two Common Warrants is a strategic move to increase potential future capital inflow while balancing immediate financing needs.
Market-wise, the issuance at
The offering is a double-edged sword for retail investors. On one hand, it secures necessary funds for operational continuity and product development, potentially leading to breakthrough products if clinical trials succeed. On the other hand, the need to offer shares at this price level and adjust warrant exercise prices may indicate weaker than expected stock performance and possible dilution concerns.
For retail investors, the critical insight is to weigh the potential benefits of continued product development against the dilution risk and the company's current market valuation. The overall industry interest in immune-oncology remains high, but individual company performance and stock dilution are key factors to monitor.
SEATTLE, WA / ACCESSWIRE / June 28, 2024 / 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) 5,339,806 shares of its common stock or pre-funded warrants in lieu thereof and (ii) warrants to purchase up to an aggregate of 10,679,612 shares of its common stock (the "Common Warrants") at a purchase price of
The offering is expected to close on or about July 1, 2024, subject to customary closing conditions. Roth Capital Partners is acting as placement agent of the offering. Dawson James Securities, Inc. is acting as co-agent. Gross proceeds, before deducting placement agent fees and commissions and offering expenses, are expected to be approximately
The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-280226), as amended, that was declared effective by the U.S. Securities and Exchange Commission ("SEC"), on June 28, 2024. 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.
The Company also has agreed to amend certain existing warrants that were previously issued in (i) August 2023 to purchase up to 41,239 shares of the Company's common stock and have exercise price of
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 and any other statements containing the words "may," "continue to," "believes," "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; uncertainties related to market conditions, the satisfaction of customary closing conditions related to the offering 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 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 APVO436, 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 such as the coronavirus (referred to as COVID-19), geopolitical risks, including the current war between Russia and Ukraine and the rising conflict in the Middle East, and macroeconomic conditions such as economic uncertainty, rising inflation and interest rates, increased 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, 2023, 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 accesswire.com
FAQ
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