Aptevo Therapeutics (NASDAQ:APVO) Inc., a biopharmaceutical company, has been notified by Nasdaq that it is currently non-compliant with the exchange's minimum bid price requirement. The notice, received on Monday, June 25, indicates that Aptevo's common stock has been trading below $1.00 for 30 consecutive business days, violating Nasdaq's Listing Rule 5550(a)(2).
The company, listed under the ticker APVO, has been granted a 180-day period until December 23, 2024, to meet the bid price criterion. During this grace period, Aptevo must maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days to regain compliance and continue its listing on the Nasdaq Stock Market.
Should Aptevo fail to meet the requirement by the specified Compliance Date, it may be eligible for an additional 180-day compliance period, provided it meets all other initial listing standards for The Nasdaq Capital Market, excluding the bid price. Aptevo has indicated that it may consider a reverse stock split as a potential remedy to address the deficiency if necessary.
This development is a forward-looking statement and, like all such statements, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Aptevo has outlined these risks in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The company has made it clear that it is considering all options to regain compliance and maintain its listing on Nasdaq. This information is based on the latest 8-K filing by Aptevo Therapeutics with the SEC.
In other recent news, Aptevo Therapeutics secured $2.3 million in a direct offering, with the sale of over 5.3 million shares and warrants. The proceeds are expected to support clinical development, working capital, and general corporate uses. Roth Capital Partners and Dawson James Securities are serving as the placement and co-agents, respectively.
Simultaneously, Aptevo set terms for a $4.6 million public offering. The offering includes common stock shares or pre-funded warrants, and accompanying common warrants. The funds are intended to advance the clinical development of its product candidates and for other corporate purposes.
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 has enrolled over half of its participants. The company also announced plans for a Phase 1b/2 trial for APVO436, a treatment for acute myeloid leukemia, in partnership with Prometrika.
Additionally, Aptevo's APVO711, a dual mechanism checkpoint inhibitor, has shown tumor-killing properties in preclinical studies and is advancing towards Investigational New Drug status. These developments are part of Aptevo's ongoing commitment to advancing cancer treatments.
InvestingPro Insights
In light of Aptevo Therapeutics' recent non-compliance notice from Nasdaq, a closer examination of the company's financial metrics and market performance provides additional context. According to real-time data, Aptevo's market capitalization stands at a mere $2.49 million, reflecting the challenges faced by the company. The stock's price-to-book ratio over the last twelve months as of Q1 2024 is 0.42, which might suggest that the stock is undervalued relative to its assets. However, the company's financial struggles are evident, with a gross profit of negative $16.69 million in the same period.
InvestingPro Tips indicate that Aptevo holds more cash than debt on its balance sheet, which could provide some financial flexibility in its efforts to regain compliance with Nasdaq's requirements. Additionally, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, potentially signaling a buying opportunity for contrarian investors. It's important to note that the stock has experienced significant volatility and has taken a considerable hit over the last week, month, and year.
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