Northwest Biotherapeutics Announces $8 Million Financing: Financing On Favorable Terms; Further Broadening of Warrant Lock-Up
BETHESDA, Md., August 11, 2020 – Northwest Biotherapeutics (OTCQB: NWBO)(“NW Bio”), a biotechnology company developing DCVax® personalized immune therapies for solid tumor cancers, today announced that the Company has completed a financing on favorable terms for approximately $8 million. The Company anticipates that this financing will help maintain the Company’s momentum, and will provide some prudent protection in the midst of the current global economic uncertainties. The financing also further broadens the lock-up of warrants that the Company has been building.
The financing comprised:
- Approximately $7 million from an offering at 32 cents per share of newly registered common stock of approximately 21.8 million shares with warrants averaging 21% (predominantly 20%, with a couple larger investors at 35%) exercisable at 34 cents per share for approximately 5.3 million shares, with an exercise period ranging from 18 to 30 months, and
- $1 Million from a convertible note (the “Note”) which is convertible at 34.5 cents. The Note contains no warrants unless it is converted. If, and only to the extent the Note is converted, it will carry 35% warrants exercisable at 34 cents per share.
The financing also broadened the warrant suspensions that the Company has been building and the Company plans to continue expanding:
- An additional approximately 75.5 million existing warrants, outstanding prior to this financing and held by investors in this financing, have been suspended until December 15, 2020 as part of this financing. These warrant suspensions were compensated on a similar basis as the warrant suspensions previously reported. In addition, all new warrants in this financing are suspended until December 15, 2020.
As the Company approaches the read-out of its Phase III trial of DCVax®-L for Glioblastoma brain cancer, the Company is working with a growing team of technical experts and regulatory advisers on various readiness preparations, including manufacturing related preparations. This financing will help the Company maintain its momentum in these very important activities.
“With this significant financing, we believe we are well positioned to execute on our near-term plans and to support the next critical phase of our business strategy,” commented Linda Powers, Chairman and CEO of the Company. “We look forward to sharing more detail on these initiatives.”
The majority of this financing involved no fees or placement expenses. On the remainder of the financing, the Company paid fees of 6% cash and 4% warrants.
