Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) has been working with institutional investors to reset share and warrant counts for most of 2017. The share price itself this year has reflected this uncertainty opening the year at .35 cents and rising early to near .50 cents. But, the news of the reboot with lenders pushed prices lower on big volume ultimately testing prices below .15 cents.
A look at the chart below shows the steep drop off in March and April followed by the recent recovery. NWBO has 191 million shares outstanding in the market place and a valuation of $39.29 million with the prices at .19 cents. The current float (available trade-able shares) was 88.75 million at last count.
Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) announced as part of its reboot with institutional investors that it closed the $7.5 million financing it announced in March. NWBO sold to several institutional investors securities totaling 28,843,692 shares, comprised of 18,843,692 common shares at $.26 per share, and 10,000,000 shares of Class C Warrants pre-funded at the closing at $.25 cents per future exercisable shares, with a one cent per share additional payment to be made at the time of actual exercise of these warrants. This arrangement is to enable investors to avoid exceeding 4.99% ownership while still funding $7.5 million.
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Additionally, the investors received five year Class A warrants to purchase up to approximately 21.6 million shares of common stock with an exercise price of $0.26 per share. They also will receive three month Class B warrants to purchase up to approximately 21.6 million shares of common stock with an exercise price of $1.00 per share. Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as the exclusive placement agent for the transaction.
NWBO is a U.S. biotechnology company developing DCVax® personalized immune therapies for operable and inoperable solid tumor cancers, and reset the Note Repurchase Agreement with a group of bondholders affiliated with Whitebox Advisors , holder of $11 million of NW Bio convertible senior notes.
With these notes otherwise due and as previously disclosed, NW Bio and Whitebox have negotiated a time payment approach tailored to the Company’s development schedule with increasing periodic payments. As part of the consideration for these adjustments, Whitebox also will be receiving NW Bio common stock.
NWBO has a broad platform technology for DCVax dendritic cell-based vaccines. The Company’s lead program is a 331-patient Phase III trial in newly diagnosed Glioblastoma multiforme (GBM). GBM is the most aggressive and lethal form of brain cancer, and is an “orphan disease.” NWBO is also pursuing a Phase I/II trial with DCVax-Direct for all types of inoperable solid tumor cancers. It has completed the 40-patient Phase I portion of the trial, and is preparing for the Phase II portion. The Company previously conducted a Phase I/II trial with DCVax-L for metastatic ovarian cancer together with the University of Pennsylvania.
Restructuring for biotech companies under phase 1, phase 2 or phase 3 is not unusual, as it indicates trial success is in the offing. These institutional players have done proper research and are usually in it for the long haul as investors.
Northwest Biotherapeutics, Inc. (OTCMKTS: NWBO) seems to have doubled down with the lenders and come to an acceptable arrangement with the bankers in the deal. The share price will eventually reflect the success of these trials and the recent sell off seems to have priced in the changes for bankers. I would add this symbol to your list of stocks to watch as the results from the trials with the FDA come back around for shareholders as NWBO seeks a cure for a devastating disease. For more information on Northwest Biotherapeutics and other fast-moving penny stocks, please subscribe to OracleDispatch.com below.