Aptevo Therapeutics Announces Reverse Stock Split
Aptevo Therapeutics, Inc. (APVO) announced a 1-for-37 reverse stock split on Friday, November 17, 2023. This action aims to regain compliance with the Nasdaq's minimum bid price requirement of $1.00 per share, necessary for continued listing on the exchange.
The reverse stock split will take effect on December 4, 2023, at market open. It will reduce the number of outstanding common shares from approximately 18.5 million to 0.5 million. This decision was approved by Aptevo's shareholders at a special meeting held on October 25, 2024.
Following the announcement, APVO stock experienced a 18.9% decline, trading at 28 cents per share at the time of writing.
Understanding Reverse Stock Splits
A reverse stock split is a process where a company reduces the number of outstanding shares by consolidating them into a smaller number of shares. This action increases the price per share, making it more attractive to investors who may be hesitant to invest in low-priced stocks.
Investing in Aptevo Therapeutics
Direct purchase: Purchase shares directly through a brokerage platform.
Invest in ETFs that hold Aptevo shares, providing exposure to the healthcare sector.
Allocate funds within your 401(k) to a mutual fund or other instrument that invests in Aptevo shares.
Conclusion
Aptevo Therapeutics' reverse stock split aims to regain compliance with Nasdaq listing requirements and potentially attract new investors. While the stock price has declined following the announcement, it remains to be seen how this action will impact the company's long-term performance.