Life after the split, Aptevo Therapeutics stock tumbles after announcing 1-for-18 reverse split

Aptevo Therapeutics Inc. (NASDAQ: APVO) stock plunged 30.9% in premarket trading Friday after the clinical-stage biotechnology company announced plans for a 1-for-18 reverse stock split.

The reverse split is expected to take effect on December 29 at 5:01 p.m. Eastern Time, with shares beginning to trade on a split-adjusted basis when markets open on December 30. The move will reduce Aptevo’s outstanding common stock from approximately 18 million shares to about 1 million shares.

Aptevo’s stockholders approved the reverse split at the company’s Annual Meeting on July 24, giving the Board discretion to determine the final ratio. The Board approved the 1-for-18 ratio on December 17.