Aptevo Therapeutics (NASDAQ:APVO) stock is falling on Thursday after the clinical-stage biotechnology company priced a public offering for its shares.
That public offering has Aptevo Therapeutics selling 3.4 million shares of APVO stock at a price of $1.35 each. The shares also come with warrants to purchase another 6.8 million shares of the company’s stock.
Aptevo Therapeutics notes that the exercise price for the warrants in this offer is also $1.35 per share. The warrants are exercisable immediately and expire five years after being issued.
Aptevo Therapeutics is expecting gross proceeds of $4.6 million from this public offering. The company intends to use these funds for the clinical development of product candidates, working capital and general corporate purposes.
What This Means for APVO Stock
A public stock offering increases the total number of outstanding shares on the market. This dilutes the stakes of current investors in the company. That’s one reason why APVO stock is down today.
The other reason is the offering price of $1.35 per share. That’s a significant discount over the prior closing price of $2.40 per share. It makes sense that APVO stock would fall after the price’s announcement.
APVO stock is down 56.3% as of Thursday morning. That comes with some 782,000 shares traded, as compared to a daily average of 142,000 shares.
Investors will want to stick around for more of the most recent stock market news!
We have all of the hottest stock market stories worth reading about on Thursday! A few examples include what’s happening with shares of Rent the Runway (NASDAQ:RENT) and Rallybio (NASDAQ:RLYB) stock and the biggest pre-market stock movers this morning. All of that news is ready below!
More Thursday Stock Market News
- Why Is Rent the Runway (RENT) Stock Up 30% Today?
- Why Is Rallybio (RLYB) Stock Up 93% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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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.
