Why Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) Shares Powered Higher on Friday

Why Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) Shares Powered Higher on Friday


If you want to see a type specimen range breakout, take a look at the Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) chart from Friday. The stock powered above the tight range formed from July thru October, clearing the 200-day simple moving average in the process. The catalyst? The company just announced that on November 7, 2018, it completed an aggregate financing of $5 million from long-term angel investors. This could be big.

According to the release, “the notes have a one-year maturity, subject to the Company’s right to prepay the loan at any time by paying the principal plus the interest due until maturity, and subject to the holders’ rights to require prepayment of the principal and accrued interest after 4 months. The Notes carry an interest rate of 10%, with OID of 5%. The notes carry 50% warrant coverage, with a warrant exercise price of $0.35 per share and an exercise period of 2 years.”

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) trumpets itself as a biotechnology company that discovers and develops personalized immune therapies for cancer in the United States and internationally.

The company develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient’s own immune system to attack cancer.

It is developing DCVax-L, a product in Phase III clinical trials to treat Glioblastome multiforme, a brain cancer; and DCVax-Direct, a product in Phase I/II clinical trials to treat various types of inoperable solid tumor cancers. The company was founded in 1996 and is headquartered in Bethesda, Maryland.

According to company materials, “Northwest Biotherapeutics is a biotechnology company focused on developing personalized immunotherapy products designed to treat cancers more effectively than current treatments, without toxicities of the kind associated with chemotherapies, and on a cost-effective basis, in both North America and Europe. The Company 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.” The Company 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.”

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As noted above, NWBO just announced that on November 7, 2018, it completed an aggregate financing of $5 million from long term angel investors.

In all, recent action has seen 21% piled on for shareholders of the stock during the trailing week, a bounce that has taken root amid largely bearish action over the larger time frame. In addition, the stock has registered increased average transaction volume recently, with the past month seeing approaching 110% beyond what we have been seeing over the larger time frame.

According to the release, “The Company also agreed with the Company’s CEO, Linda Powers, on further extensions of the Demand Notes relating to the $5.4 million of funding which Ms. Powers provided to the Company in February, March and April of 2018 as a short-term bridge. The further extensions will extend the notes to a maturity of one year from the funding dates.  In consideration of this continuing forbearance, the Company will issue 50% warrants with the same exercise price and exercise period as in the angel investors’ notes.”

At this time, carrying a capital value in the market of $126.85M, NWBO has a reserve ($1.6M) of cash on the books, which compares with about $98.5M in total current liabilities. NWBO is pulling in trailing 12-month revenues of $895K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 206.1%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $NWBO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $NWBO, either long or short, and we have not been compensated for this article.

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