1:44 Stock Split: Mega Pharma Company Initiates Massive Share Splits; Do You Own?

Aptevo Therapeutics, a biotech company listed on Nasdaq, has carried massive share splits in the ratio of 1-for-44. However, this is a unique form of stock split as it will be a reversed move. Simply put, 44 existing shares of Aptevo will be squeezed to become 1 equity share. The approval for the same was done last month.

In its statement, Aptevo said, it will conduct a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-44 (the "Reverse Stock Split"). The Reverse Stock Split is expected to become effective on March 5, 2024, at 5:01 p.m. Eastern Time (the "Effective Time"), with shares expected to begin trading on the Nasdaq Capital Market, on a split-adjusted, at market open on March 6, 2024.

Under the ratio, every 44 shares of the Company's common stock issued and outstanding as of the Effective Time will be automatically converted into one share of the Company's common stock. No change will be made to the trading symbol for the Company's shares of common stock or public warrants, "APVO" and "APVTW", respectively, in connection with the reverse split.

Aptevo said the Reverse Stock Split is part of the Company's plan to regain compliance with the minimum bid price requirement of $1.00 per share required to maintain continued listing on The Nasdaq Capital Market, among other benefits.

Further, Aptevo highlighted that the Reverse Stock Split will reduce the number of shares of the Company's outstanding common stock from approximately 23.5 million shares (as of the date of this press release, when including issuances in the process) to approximately 0.53 million shares.

The reverse split will affect all issued and outstanding shares of common stock. All outstanding options, restricted stock units, warrants, and other securities entitling their holders to purchase or otherwise receive shares of common stock will be adjusted as a result of the reverse split, as required by the terms of each security.

The number of shares available to be awarded under the Company's equity incentive plans will also be appropriately adjusted. Following the reverse split, the par value of the Common Stock will remain unchanged at $0.001 par value per share. The reverse split will not change the authorized number of shares of common stock or preferred stock. No fractional shares will be issued in connection with the reverse split, and stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment in lieu of such fractional share.

Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on developing novel bispecific immunotherapies for the treatment of cancer. Aptevo is seeking to improve treatment outcomes and transform the lives of cancer patients.

On Tuesday, the stock traded at $0.14, down 2.83% on Nasdaq.