Aptevo Therapeutics (NASDAQ:APVO) stock is sliding lower on Wednesday after the biotechnology company announced a public share offering.
The APVO stock offering has the company selling 8,064,517 shares at a price of 62 cents per share. The company is also issuing Series A warrants and Series B warrants to acquire another 8,064,517 shares of common stock each. These warrants have an exercise price of 62 cents per share and expire in 2025 and 2028, respectively.
Aptevo Therapeutics is expecting gross proceeds of $5 million from the public stock offering. The biotechnology company intends to use these funds for working capital.
What This Means for APVO Stock
With this public stock offering, Aptevo Therapeutics is increasing the total number of shares of APVO stock outstanding. That also dilutes the current stakes of shareholders in the company. That helps explain why the company’s shares are down today.
To go along with that, the public offering price isn’t helping APVO stock. 62 cents is well below the company’s prior closing price of 98 cents per share. Keeping that in mind, it makes sense that the company’s stock is falling today.
Today’s news also brings heavy trading to APVO stock. As of this writing, more than 408,000 shares of the company’s stock have changed hands. That’s already well above its daily average trading volume of about 179,000 shares.
APVO stock is down 33.2% as of Wednesday morning.
Investors seeking even more of the most recent stock market news are in luck!
We’ve got all of the latest stock market stories that traders need to know about on Wednesday. That includes what’s going on with shares of Cambium Networks (NASDAQ:CMBM) stock, Rubicon Technologies (NYSE:RBT) stock, and Crown ElectroKinetics (NASDAQ:CRKN) stock today. All of that news is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
