Investors

Provides Opportunistic Capital of up to $35 Million to Aptevo During the 36-month Term of the Agreement

SEATTLE, Dec. 21, 2018 (GLOBE NEWSWIRE) -- Aptevo Therapeutics Inc. (Nasdaq: APVO), a biotechnology company focused on developing novel oncology and hematology therapeutics, announced today that it has entered into a common stock purchase agreement and registration rights agreement with Lincoln Park Capital (LPC) Fund, LLC, under which LPC has committed to purchase up to an aggregate of $35 million in Aptevo’s common stock over a 36-month term.

Under the terms and conditions of the purchase agreement, and after the filing and effectiveness of a registration statement registering the shares to be sold to LPC, Aptevo has the right, in its sole discretion, to sell shares of common stock to LPC and LPC is obligated to purchase the common stock at times and amounts as set forth in the purchase agreement. There are no upper limits on the price per share that LPC could be obligated to purchase common stock from Aptevo, and the purchase price of any future shares will be based on the prevailing market prices of Aptevo’s shares around the time of each sale. Concomitantly, LPC has agreed not to engage in any direct or indirect short selling or hedging of Aptevo common stock during the term of the purchase agreement.

“We’re pleased to reach this agreement with Lincoln Park Capital which provides enhanced operational flexibility and the ability to opportunistically access capital at our discretion under favorable terms, potentially minimizing dilution to our current shareholders,” said Jeff Lamothe, Chief Financial Officer. “Capital raised over the next three years under these agreements may be at potentially higher valuations as we move toward important upcoming clinical milestones in 2019, including anticipated top-line preliminary data read-outs from two key ADAPTIR programs, APVO436 and APVO210, which are being evaluated for the treatment of acute myeloid leukemia and autoimmune disorders, respectively. We believe that the combination of our current cash, IXINITY cash flow, and the proceeds we may elect to access under these agreements with LPC has strengthened our cash runway, potentially providing us access to capital through the second half of 2020. We look forward to reaching these important milestones over the next several quarters and advancing our portfolio of innovative ADAPTIR bispecific therapeutics for cancer and autoimmune diseases.”

No warrants, derivatives, or financial covenants are associated with the purchase agreement, and the agreement may be terminated by Aptevo at any time, at its sole discretion, without any cost or penalty. Aptevo plans to use the proceeds from the sales to LPC to support the advancement of its next-generation ADAPTIR bispecific antibody candidates and for working capital and general corporate purposes. As consideration for entering into these agreements and committing to purchase up to $35 million in stock from the Company, Aptevo has issued shares of its common stock to LPC as a commitment fee and will issue additional commitment fee shares upon effectiveness of the registration statement.

A more detailed description of these agreements will be set forth in Aptevo’s Current Report on Form 8-K, which will be filed with the SEC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.

About Aptevo Therapeutics Inc.

Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. Aptevo has a commercial product, IXINITY® coagulation factor IX (recombinant), approved and marketed in the United States for the treatment of Hemophilia B, and a versatile core technology – the ADAPTIR™ modular protein technology platform capable of generating highly-differentiated bispecific antibodies with unique mechanisms of action to treat cancer or autoimmune diseases. Aptevo has a broad pipeline of novel investigational-stage bispecific antibody candidates focused in immuno- oncology and autoimmune disease and inflammation. For more information, please visit www.aptevotherapeutics.com

About Lincoln Park Capital Fund, LLC.

LPC is an institutional investor headquartered in Chicago, Illinois. LPC’s experienced professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology. LPC’s investments range from multi-year financial commitments to fund growth to special situation financings to long-term strategic capital offering companies’ certainty, flexibility and consistency. For more information, visit www.lpcfunds.com

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, statements regarding the anticipated proceeds available to Aptevo under the share purchase agreement with LPC, the sufficiency of Aptevo’s funding for planned operations, the anticipated timing of clinical milestones, Aptevo’s outlook, financial performance or financial condition, Aptevo’s technology and related pipeline, and any other statements containing the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “forecasts,” “estimates,” “will” and similar expressions are forward-looking statements. These forward-looking statements are based on Aptevo’s current intentions, beliefs and expectations regarding future events. Aptevo cannot guarantee that any forward-looking statement will be accurate. Investors should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from Aptevo’s expectations. Investors are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, Aptevo does not undertake to update any forward-looking statement to reflect new information, events or circumstances.

There are a number of important factors that could cause Aptevo’s actual results to differ materially from those indicated by such forward-looking statements, including failure to satisfy conditions necessary for Aptevo to cause LPC to purchase shares under the share purchase agreement, a deterioration in Aptevo’s business or prospects; adverse developments in research and development; adverse developments in the U.S. or global capital markets, credit markets or economies generally; and changes in regulatory, social and political conditions. Additional risks and factors that may affect results are set forth in Aptevo’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, as filed on March 13, 2018 and its subsequent reports on Form 10-Q and current reports on Form 8-K. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from Aptevo’s expectations in any forward-looking statement.

Source:

Aptevo Therapeutics Stacey Jurchison
Senior Director, Investor Relations and Corporate Communications
206-859-6628 / JurchisonS@apvo.com

Source: Aptevo Therapeutics Inc.