AVEO Announces Effectiveness of 1-for-10 Reverse Stock Split
February 19 2020 - 9:08AM
Business Wire
AVEO Oncology (NASDAQ: AVEO) today announced that it will effect
a 1-for-10 reverse stock split of its common stock that will be
effective as of 5:00 p.m. Eastern Time today, February 19, 2020.
AVEO’s common stock will begin trading on the Nasdaq Capital Market
on a split-adjusted basis when the market opens on Thursday,
February 20, 2020. The new CUSIP number for AVEO’s common stock
following the reverse stock split is 053588 307.
On February 13, 2020, the holders of a majority of AVEO’s
outstanding shares of common stock approved the reverse stock split
and gave AVEO’s board of directors discretionary authority to
select a ratio for the split ranging from 1-for-5 to 1-for-15. The
board of directors approved the reverse stock split at a ratio of
1-for-10 on February 13, 2020.
The reverse stock split affects all issued and outstanding
shares of AVEO’s common stock, as well as the number of authorized
shares of AVEO’s common stock and the number of shares of common
stock available for issuance under AVEO’s equity incentive plans.
The reverse stock split will reduce the number of shares of the
AVEO’s issued and outstanding common stock from approximately 160.8
million to approximately 16.1 million. In addition, the reverse
stock split will effect a reduction in the number of shares of
common stock issuable upon the exercise of stock options and
warrants outstanding immediately prior to the reverse stock split,
with a proportional increase in the respective exercise prices. The
reverse stock split will proportionately reduce the number of
authorized shares of common stock from 500 million shares to 50
million shares. The reverse stock split will not change the par
value of the common stock or the authorized number of shares of
preferred stock of AVEO.
The reverse stock split will affect all holders of common stock
uniformly and will not alter any stockholder’s percentage ownership
interest in AVEO, except to the extent that the reverse stock split
would result in a stockholder owning a fractional share. No
fractional shares of common stock will be issued in connection with
the reverse stock split; stockholders who otherwise would be
entitled to a fractional share of common stock will be entitled to
receive a proportional cash payment.
AVEO’s transfer agent, Computershare, is acting as the exchange
agent for the reverse stock split. For those stockholders holding
physical stock certificates, Computershare will send instructions
for exchanging those certificates for shares held in book-entry
form representing the post-split number of shares. Stockholders
holding their shares in book-entry form or in brokerage accounts
need not take any action in connection with the reverse stock
split. Beneficial holders are encouraged to contact their bank,
broker or custodian with any procedural questions.
About AVEO
AVEO is developing an oncology pipeline designed to provide a
better life for patients with cancer. Our strategy is to focus our
resources toward development and commercialization of our product
candidates in North America, while leveraging partnerships to
support development and commercialization in other geographies. Our
lead candidate, tivozanib (FOTIVDA®) is approved in the European
Union, the United Kingdom, Norway, New Zealand and Iceland for the
treatment of adult patients with advanced renal cell carcinoma.
AVEO is working to develop and commercialize tivozanib in North
America as a treatment for renal cell carcinoma, hepatocellular
carcinoma and other cancers. Ficlatuzumab (HGF MAb) is in phase 2
clinical trials in head and neck cancer and acute myeloid leukemia
and has reported early clinical data in pancreatic cancer. AVEO’s
earlier-stage pipeline includes several monoclonal antibodies in
oncology development, including AV-203 (anti-ErbB3 MAb), AV-380
(GDF15 MAb) and AV-353 (Notch 3 MAb). For more information, please
visit the Company’s website at www.aveooncology.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements of AVEO
within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve substantial risks and uncertainties. All
statements, other than statements of historical fact, contained in
this press release are forward-looking statements. The words
“anticipate,” “believe,” “expect,” “intend,” “may,” “plan,”
“potential,” “could,” “should,” “would,” “seek,” “look forward,”
“advance,” “goal,” “strategy,” or the negative of these terms or
other similar expressions, are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements include
statements relating to the effectiveness of the reverse stock
split. AVEO has based its expectations and estimates on assumptions
that may prove to be incorrect. As a result, readers are cautioned
not to place undue reliance on these expectations and estimates.
Actual results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking
statements that AVEO makes due to a number of important factors,
including risks relating to: AVEO’s ability, and the ability of its
licensees, to demonstrate to the satisfaction of applicable
regulatory agencies such as the U.S. Food and Drug Administration
(FDA) the safety, efficacy and clinically meaningful benefit of
AVEO’s product candidates, including, in particular, tivozanib and
ficlatuzumab; AVEO’s ability to successfully file a New Drug
Application (NDA) for tivozanib; and AVEO’s ability to enter into
and maintain its third party collaboration and license agreements,
and its ability, and the ability of its strategic partners, to
achieve development and commercialization objectives under these
arrangements. AVEO faces other risks relating to its business as
well, including risks relating to the timing and costs of seeking
and obtaining regulatory approval; AVEO’s and its collaborators’
ability to successfully enroll and complete clinical trials; AVEO’s
ability to maintain compliance with regulatory requirements
applicable to its product candidates; AVEO’s ability to obtain and
maintain adequate protection for intellectual property rights
relating to its product candidates; AVEO’s ability to successfully
implement its strategic plans; AVEO’s ability to raise the
substantial additional funds required to achieve its goals,
including those goals pertaining to the development and
commercialization of tivozanib; unplanned capital requirements;
adverse general economic and industry conditions; competitive
factors; and those risks discussed in the sections titled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Liquidity and Capital
Resources” included in AVEO’s quarterly and annual reports on file
with the Securities and Exchange Commission (SEC) and in other
filings that AVEO makes with the SEC. The forward-looking
statements in this press release represent AVEO’s views as of the
date of this press release, and subsequent events and developments
may cause its views to change. While AVEO may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. You should,
therefore, not rely on these forward-looking statements as
representing AVEO's views as of any date other than the date of
this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200219005554/en/
David Pitts, Argot Partners (212) 600-1902
aveo@argotpartners.com
AVEO Pharmaceuticals (NASDAQ:AVEO)
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