SEATTLE - Aptevo Therapeutics Inc . (NASDAQ:APVO), a company specializing in the development of novel immuno-oncology therapies, has announced agreements with healthcare-focused and institutional investors for a registered direct offering. The transaction includes the sale of over 5.3 million shares and warrants to purchase up to approximately 10.7 million shares, with the offering expected to close around July 1, 2024.
The securities are priced at $0.515 per share and associated warrant, aligning with market regulations. Investors will receive two warrants for each share, exercisable upon shareholder approval, with a five-year term. The proceeds, estimated at $2.3 million before fees and expenses, are earmarked for clinical development, working capital, and general corporate uses.
Additionally, Aptevo has agreed to amend the terms of previously issued warrants, reducing their exercise price to $0.515 per share, effective upon the offering's closure. Roth Capital Partners is serving as the placement agent, with Dawson James Securities as the co-agent.
The offering is being made under an effective registration statement filed with the U.S. Securities and Exchange Commission. Prospective investors can obtain the prospectus from the SEC's website or directly from Roth Capital Partners.
This funding initiative follows Aptevo's commitment to advancing cancer treatments through its proprietary ADAPTIR™ and ADAPTIR-FLEX™ platform technologies. The company's forward-looking statements indicate a focus on the completion and use of proceeds from the offering, subject to customary closing conditions and market factors.
This news article is based on a press release statement from Aptevo Therapeutics.
In other recent news, Aptevo Therapeutics has announced the pricing of a public stock offering aimed to raise approximately $4.6 million. The offering, which includes common stock shares or pre-funded warrants, and accompanying common warrants, is set to close in 2024. The proceeds will be used to advance the clinical development of its product candidates and for other corporate purposes. Roth Capital Partners and Dawson James Securities, Inc. are facilitating the offering.
On the clinical front, Aptevo reported progress in its cancer drug trials. A patient in the ALG.APV-527 trial experienced stable disease for over nine months, and the trial, which is assessing treatment of various solid tumors, has enrolled over half of its participants. Aptevo also announced plans for a Phase 1b/2 trial for APVO436, a treatment for acute myeloid leukemia, in partnership with Prometrika. Preliminary results suggest promising efficacy and safety profile.
In addition, the company's APVO711, a dual mechanism checkpoint inhibitor, has shown tumor-killing properties in preclinical studies and is advancing towards Investigational New Drug status.
InvestingPro Insights
Aptevo Therapeutics Inc. (NASDAQ:APVO), in the midst of a capital raise through a direct offering, shows a market capitalization of a modest $2.1 million, reflecting the company's niche position in the vast biotechnology industry. The InvestingPro data highlights a challenging financial landscape for the company, with a negative price-to-earnings (P/E) ratio of -0.08 for the last twelve months as of Q1 2024, suggesting that investors are wary of the company's earnings potential.
The company's stock price has seen significant decline over various timeframes, with a 1 Month Price Total Return of -29.37% and a staggering 1 Year Price Total Return of -99.18%, indicating a tumultuous period for shareholders. Additionally, with a Price / Book ratio of 0.34, the company's stock is trading below the value of its assets, which could attract investors looking for potential undervalued opportunities.
An InvestingPro Tip for APVO is that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which might interest traders looking for a rebound opportunity. However, with high price volatility and a lack of profitability over the last twelve months, potential investors should approach with caution.
For those considering a deeper dive into Aptevo's financials and future prospects, InvestingPro offers additional insights and tips. Currently, there are 15 more InvestingPro Tips available for APVO, which can be accessed at https://www.investing.com/pro/APVO. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolkit for informed investment decisions.
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