Aptevo Therapeutics Announces Pricing of $4.6 Million Public Offering

Rhea-AI Summary

Aptevo Therapeutics Inc. (NASDAQ:APVO) announces a public offering of 3.4 million shares of common stock and warrants to purchase 6.8 million shares at $1.35 per share. Each share comes with two Common Warrants, with an exercise price of $1.35 per share, expiring in five years.

Insights

Financial Analyst

Aptevo Therapeutics Inc.'s announcement of a public offering can have a significant impact on its financial flexibility and capital structure. The issuance of 3.4 million shares, along with pre-funded warrants and additional common warrants, is a strategy to raise capital. By setting the price at $1.35 per share, which is below the market price, the company is likely aiming to incentivize immediate investment. However, this could lead to dilution of existing shareholders' equity, which is a concern for current investors as their ownership percentage decreases.

The offering's structure, providing two common warrants with each share, is designed to potentially double the investment influx if all warrants are exercised. This could be an indicator of the company's confidence in its future performance, as warrant exercise is typically contingent on a future stock price increase. However, investors should be aware that the exercise of these warrants would result in further dilution.

For the short term, the influx of capital might bolster the company's ability to fund its operations and research, which is important for a clinical-stage biotech firm. In the long term, the success of this strategy will largely depend on the company's ability to leverage this capital to bring its immune-oncology therapeutics to market successfully. If successful, the share price could appreciate, offsetting the dilution effect. Conversely, if the company's developments falter, investors might face a devaluation.

Market Research Analyst

The biotechnology sector is known for its high level of volatility and risk, particularly for clinical-stage companies like Aptevo Therapeutics. The proprietary ADAPTIR™ and ADAPTIR-FLEX™ platform technologies represent potential breakthroughs in immune-oncology, a field that has seen significant investor interest due to its innovative approach to cancer treatment.

Market reception to such public offerings can be mixed. Investors often view them as necessary for funding the costly clinical trial process, but they also remain cautious due to the inherent risks of drug development. The timing of this offering and the conditions set forth, such as the exercise price being equal to the purchase price, suggest Aptevo is leveraging current market conditions to secure funding without offering a discount on the warrants.

It's important to consider the competitive landscape when evaluating Aptevo's prospects. If their immune-oncology therapeutics show promise, it could position the company favorably against competitors. However, delays or failures in clinical trials could diminish investor confidence and negatively impact the stock's performance. Monitoring the progress of their clinical trials and any regulatory news will be essential for understanding the potential impact on the stock.

Biotech Sector Analyst

From a biotech sector perspective, Aptevo's use of its ADAPTIR™ platforms positions the company within a niche of the immune-oncology market that is focused on novel therapeutic approaches. The success of such technologies is highly contingent on clinical trial outcomes and FDA approval processes, which are notoriously unpredictable.

Investors in the biotech sector often look for companies with a robust pipeline and multiple candidates in various stages of development to spread risk. Aptevo's funding through this public offering could be aimed at advancing its pipeline, which would be a positive sign. However, the risk of dilution and the additional pressure to deliver results can weigh heavily on the company's operational performance.

Understanding the scientific validity and market potential of Aptevo's ADAPTIR™ platforms is critical. If the technology proves to be a game-changer in treating cancer, it could lead to substantial long-term rewards for investors. Nevertheless, the path to such success is fraught with challenges, including rigorous clinical testing and the need to meet stringent regulatory standards.

SEATTLE, WA / ACCESSWIRE / April 11, 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 the pricing of a public offering of (i) 3,400,000 shares of its common stock or pre-funded warrants in lieu thereof and (ii) warrants to purchase up to an aggregate of 6,800,000 shares of its common stock (the "Common Warrants") at a purchase price of $1.35 per share and associated Common Warrant. Each share of common stock is being offered together with two Common Warrants, each to purchase one share of common stock. The Common Warrants will have an exercise price of $1.35 per share, are exercisable upon issuance, and will expire five years following the date of issuance. The offering is expected to close on or about April 15, 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 $4.6 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. 333-278103), as amended, that was declared effective by the U.S. Securities and Exchange Commission ("SEC"), on April 10, 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.

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 public offering, the satisfaction of customary closing conditions related to the public 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 public 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

What did Aptevo Therapeutics Inc. (APVO) announce?

Aptevo Therapeutics Inc. announced the pricing of a public offering of 3.4 million shares of common stock and warrants to purchase 6.8 million shares at $1.35 per share.

How many Common Warrants are associated with each share of common stock?

Each share of common stock is being offered with two Common Warrants, each to purchase one share of common stock.

What is the exercise price of the Common Warrants?

The Common Warrants have an exercise price of $1.35 per share.

When will the Common Warrants expire?

The Common Warrants are exercisable upon issuance and will expire five years following the date of issuance.