Avalo Therapeutics Announces One-for-Twelve Reverse Stock Split
07 July 2022 - 6:05AM
Avalo Therapeutics, Inc. (Nasdaq: AVTX) today announced a
one-for-twelve reverse stock split of the Company’s common stock,
par value $0.001, which will be effective at 5:00 pm Eastern Time
tomorrow, July 7, 2022. The Company’s common stock will trade on
the Nasdaq Capital Market on a split-adjusted basis beginning on
July 8, 2022, under the Company’s existing trading symbol “AVTX”.
The Company is implementing the reverse stock split as planned
to increase the per share price of its common stock to regain
compliance with the listing requirements of the Nasdaq Capital
Market. The new CUSIP number following the reverse stock split will
be 05338F207.
The reverse stock split will affect all stockholders uniformly
and will not alter any stockholder’s percentage ownership interest
in the Company, except to the extent that the reverse stock split
results in any of the Company’s stockholders owning a fractional
share as described below.
The reverse stock split will reduce the number of shares of
common stock issued and outstanding from approximately 112,868,677
to approximately 9,405,724. No fractional shares will be issued in
connection with the reverse stock split. Each stockholder who would
otherwise be entitled to receive a fraction of a share of the
Company’s common stock will instead receive one whole share of
common stock.
As of the effective date of the reverse stock split, the number
of shares of common stock available for issuance under the
Company’s equity incentive plans and issuable upon the exercise of
stock options and warrants outstanding immediately prior to the
reverse stock split will be proportionately affected by the reverse
stock split. The exercise prices of the Company’s outstanding
options and warrants will be adjusted in accordance with their
respective terms.
There will be no change to the number of authorized shares or
the par value per share.
American Stock Transfer & Trust Company, LLC (“AST”) is
acting as the exchange agent for the reverse stock split and will
provide instructions to stockholders of record regarding the
reverse stock split. AST will be issuing, automatically and without
the need for stockholder action, all of the post-split shares in
paperless, “book-entry” form, and AST will hold the shares in an
account set up for the stockholder. Stockholders who currently hold
certificates need not exchange their certificates to receive their
“book-entry” accounts at AST; those current certificates do not
need to be submitted to AST for exchange in order to receive the
“book-entry” accounts. Those stockholders holding common stock in
“street name” will receive instructions from their brokers.
About Avalo Therapeutics
Avalo Therapeutics is a leading clinical-stage precision
medicine company that discovers, develops, and commercializes
targeted therapeutics for patients with significant unmet clinical
need in immunology and rare genetic diseases. The Company has built
a diverse portfolio of innovative therapies to deliver meaningful
medical impact for patients in urgent need. The Company’s clinical
candidates commonly have a proven mechanistic rationale, biomarkers
and/or an established proof-of-concept to expedite and increase the
probability of success.
For more information about Avalo, please visit
www.avalotx.com.
Forward-Looking Statements
This press release may include forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are subject to significant
risks and uncertainties that are subject to change based on various
factors (many of which are beyond Avalo’s control), which could
cause actual results to differ from the forward-looking statements.
Such statements may include, without limitation, statements with
respect to Avalo’s plans, objectives, projections, expectations and
intentions and other statements identified by words such as
“projects,” “may,” “might,” “will,” “could,” “would,” “should,”
“continue,” “seeks,” “aims,” “predicts,” “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “plans,” “potential,” or
similar expressions (including their use in the negative), or by
discussions of future matters such as: the development of product
candidates or products; timing and success of trial results and
regulatory review; potential attributes and benefits of product
candidates; the future financial and operational outlook; and other
statements that are not historical. These statements are based upon
the current beliefs and expectations of Avalo’s management but are
subject to significant risks and uncertainties, including: risks
relating to the effectiveness of the reverse stock split; risks
relating to the effect of the reverse stock split on the Company’s
stock price; Avalo's cash position and the potential need for it to
raise additional capital; drug development costs, timing and other
risks, including reliance on investigators and enrollment of
patients in clinical trials, which might be slowed by the COVID-19
pandemic; reliance on key personnel, including as a result of
recent management changes; regulatory risks; general economic and
market risks and uncertainties, including those caused by the
COVID-19 pandemic and tensions in Ukraine; and those other risks
detailed in Avalo’s filings with the SEC. Actual results may differ
from those set forth in the forward-looking statements. Except as
required by applicable law, Avalo expressly disclaims any
obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in Avalo’s expectations with respect thereto or
any change in events, conditions or circumstances on which any
statement is based.
For media and investor inquiries
Christopher Sullivan, CFO Avalo Therapeutics,
Inc.ir@avalotx.com 410-803-6793 or Chris Brinzey ICR Westwicke
Chris.brinzey@westwicke.com 339-970-2843
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