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Aptevo Therapeutics Secures $35 Million Term Loan Agreement

SEATTLE--(BUSINESS WIRE)--Aug. 1, 2016-- Aptevo Therapeutics Inc. (“Aptevo”; “the Company”) (Nasdaq:APVO), a biotechnology company focused on developing novel oncology and hematology therapeutics, announced today that it has reached agreement with MidCap Financial on the final terms on a $35 million term loan. The agreement provides Aptevo with up to $35 million of available borrowing capacity, which will be available to the Company in two tranches of $15 million to $20 million, at the Company’s discretion, through January 2021. The agreement bears interest at a rate of LIBOR plus 7.60% per annum. The parties expect to close the transaction at the end of the week, provided certain closing conditions are met.

The Company expects to draw the first tranche in August 2016, and will be able to access the second tranche after the Company achieves net commercial products revenue of $40 million on a trailing twelve month basis and receives the $20 million balance of the Emergent BioSolutions cash injection. This $20 million amount is secured by a non-negotiable, unsecured promissory note and will be received within six to 12 months of the separation.

Marvin White, President and Chief Executive Officer of Aptevo, stated: “We are pleased to partner with MidCap Financial on this agreement. We believe this financing, along with the $65 million total cash contribution from Emergent BioSolutions and the cash flows generated from our commercial product portfolio, provide Aptevo with a solid cash position to pursue our strategy of bringing novel oncology and hematology therapeutics to market in order to enhance patients’ lives and drive value for our shareholders.”

About Aptevo Therapeutics
Aptevo Therapeutics Inc. is a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. Its core technology is the ADAPTIR™ (modular protein technology) platform. Aptevo has four revenue-generating products in the areas of hematology and infectious diseases, as well as various investigational stage product candidates in immuno-oncology.

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 potential opportunities and financial impact of the transaction, our technology and related pipeline, collaboration and partnership opportunities 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 our actual results to differ materially from those indicated by such forward-looking statements, including possible negative effects on our business operations, assets or financial results as a result of the separation; a deterioration in our business or prospects; adverse developments in our customer-base or markets; 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 our filings with the Securities and Exchange Commission, including our Registration Statement on Form 10, as amended. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement.

Source: Aptevo Therapeutics

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