Northwest Biotherapeutics (OTCQB: NWBO) (NWBio), a biotechnology company developing DCVax® personalized immune therapies for solid tumor cancers, announced that it has completed a $12 million financing to fund operations. The majority of the financing is being provided by new investors.
The financing is in the form of Series A Convertible Preferred Stock and Warrants. The Preferred Stock will be convertible into common stock, but only when common stock is available or after 6 months following issuance. The Warrants will be exercisable for common stock, but only when common stock is available. The shares are registered, but are subject to restrictions under which they may not be conveyed or traded until a shareholder vote takes place, pursuant to which the number of authorized shares is increased. The shares are also subject to a voting agreement, under which the investors have agreed to vote in support of such increase in authorized shares.
The investors are purchasing the Series A Preferred Stock at a price of $1.70 per share, and each such preferred share will be convertible into 10 common shares valued at $0.17 cents per share. The investors are also receiving Warrants for a number of common shares equal to the number of conversion shares, with an exercise price of $0.22 per share and an exercise period of two years.
As reported in the Company's recent 10-Q filing, the Company has been in discussions with investors for this financing during the last couple of months. During this period, while the price of the Company's common stock hovered mostly at $0.16-$0.17 per share, the terms were set at $0.17 per share of common stock and $0.22 exercise price for the warrants. As also previously reported, some of the investors provided advance funding prior to completion of the financing and its documentation.
Linda Powers, the Company's CEO, commented, "We are pleased to see a growing number of new investors becoming interested in our DCVax technology and its encouraging potential, and providing the majority of the largest financing we have done this year. We are also grateful for our long-term, patient and loyal shareholder base, and their participation in this financing as well. It is gratifying to have both ongoing and expanded support as we move forward with our ongoing Phase 3 trial (in which we are continuing to ship doses, treat patients and collect data) and other programs we have been preparing."
About Northwest Biotherapeutics
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 the 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 preparing for the Phase II portion of Phase I/II trials with DCVax-Direct for inoperable solid tumors. It has completed the 40-patient Phase I portion of the trial. The Company also previously conducted a Phase I/II trial with DCVax-L for metastatic ovarian cancer together with the University of Pennsylvania.