Northwest Bio Announces Transactions for $5.4 Million in New Financing $2.4 Million Immediate Funding and Agreement to Purchase First $3 Million of New Shares Under Pending Equity Facility
BETHESDA, Md., Nov. 17, 2011 /PRNewswire/ -- Northwest Biotherapeutics (OTC.BB: NWBO) (Northwest Bio) today announced $2.4 million in new funding under favorable loan terms, as well as an agreement to purchase the first $3 million in shares of common stock under the previously announced agreement for an equity facility of up to $25 million over a 30-month term.
The $2.4 million is comprised of two loans, both from existing non-affiliate investors. One loan is for $2 million with an interest rate of 6% and a maturity of 6 months, 30% warrant coverage at an exercise price substantially above the current market price ($.57 per share), and no convertibility. The second loan is for $400,000, with an interest rate of 6% and a maturity of 2 years, no warrants, original issue discount of 10%, and convertibility at a 10% discount from the market price at the time of conversion.
An existing non-affiliate investor has also entered into a Purchase Agreement to purchase the first $3 million of newly issued shares of common stock under the Company's pending equity facility, at a 5% discount from the current market price at the time of the stock purchases.
As announced in June, the equity facility will involve filing a Registration Statement and will enable the Company to issue up to $25 million of common stock over a 30-month period. All use of the facility will be at the Company's sole discretion. The Company previously entered into an overall agreement with Toucan Partners for this equity facility, in order to ensure that the facility would be administered in a positive and beneficial manner for the Company. The agreement with Toucan expressly contemplated that a series of investors would commit to purchase portions of the overall amount of stock to be issued. With an agreement now in place for the first $3 million of such stock purchases to be made by an existing investor, in a series of transactions based upon the market price and trading volume of the stock, the Company plans to proceed rapidly with the Registration Statement.
Linda Powers, CEO of Northwest Bio observed, "We are pleased to see the growing investor interest in providing further financing to the Company. These positive financial arrangements will help us continue to ramp up and accelerate our programs, including our 240-patient clinical trial of DCVax® for Glioblastoma multiforme (GBM) brain cancer in both the US and Europe."
About Northwest Biotherapeutics
Northwest Biotherapeutics is a biotechnology company focused on developing immunotherapy products 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 US and Europe. The Company has a broad platform technology for dendritic cell-based vaccines. The Company's lead clinical trial is a 240-patient Phase II trial in newly diagnosed Glioblastoma multiforme ("GBM"), the most aggressive and lethal brain cancer. The Company also previously received clearance from the FDA for a 612-patient Phase III trial in prostate cancer, and clearance from the FDA for Phase I trials in multiple other cancers. The Company has also conducted a Phase I/II trial with DCVax® for recurrent metastatic ovarian cancer. For further information about clinical sites and about the Company, please visit the Company's web site at www.nwbio.com.
Statements made in this news release that are not historical facts, including statements concerning future treatment of patients with GBM using DCVax® and future clinical trials, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "intends," and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated, such as the Company's ability to raise additional capital, risks related to the Company's ability to enroll patients in its clinical trials and complete the trials on a timely basis, the uncertainty of the clinical trials process, uncertainties about the timely performance of third parties, and whether the Company's products will demonstrate safety and efficacy. Additional information on these and other factors, including Risk Factors, which could affect the Company's results, is included in its Securities and Exchange Commission ("SEC") filings. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. You should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.
SOURCE Northwest Biotherapeutics