Aptevo Stock Rises On $2.1M Registered Direct Offering, Warrant Sale: Retail Sentiment Touches Year-High
The company said that net proceeds from the offering will be used for the continued clinical development of product candidates, as working capital, and for other general corporate purposes.
Shares of Aptevo Therapeutics Inc. (APVO) rocketed 41% on Thursday after the company said it is looking to raise about $2.1 million in a registered direct offering and warrants sale.
The company said it has entered into definitive securities purchase agreements for the purchase and sale of 1.76 million shares of its common stock in a registered direct offering and warrants to purchase up to 3.5 million shares of common stock in a concurrent private placement at a combined purchase price of $1.19 per share and accompanying warrant.
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The warrants will have an exercise price of $1.19 per share and will expire five years from the initial exercise date.
The offering is expected to close on or about April 4.
The company will use the net proceeds from the offering for the continued clinical development of product candidates, as working capital, and for other general corporate purposes.
On Stocktwits, retail investor sentiment about Aptevo jumped from ‘extremely bearish’ to ‘extremely bullish’ territory (97/100), hitting a one-year high. At the same time, message volume touched ‘extremely high’ levels.
A Stocktwits user opined that the registered direct offering may be a “bailout” to institutions who were short.
Another user, however, expressed optimism about the share price rising to $3.
APVO shares have lost over 55% this year and nearly all its value over the past 12 months.
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