Northwest Biotherapeutics Raises Funding and Proceeds With Balance Sheet Restructuring
BETHESDA, M.D., July 7 Northwest Biotherapeutics, Inc. ("NWBT" or the "Company") (OTC Bulletin Board: NWBO), developer of the DCVax® personalized cancer vaccines, announced today that during the second quarter it raised funding of $2.65 million from investors. The funding included $1.75 million in purchases of restricted common stock of the Company (the "Common Stock") by a number of private investors, together with purchases of restricted Common Stock totaling $900,000 by SDS Capital and by Ms. Linda F. Powers, Chair of the Company's Board. The Company also continued to make progress on restructuring of its balance sheet, through debt conversions and extensions with its largest debt holders. The new investment by SDS Capital was part of a larger restructuring transaction with SDS.
The $1.75 million in purchases of Common Stock by private investors were made at a price of seventy-five cents ($0.75) per share, with ten percent (10%) warrant coverage.
The restructuring transaction with SDS Capital was undertaken pursuant to a Conversion and Extension Agreement, which included the conversion or extension of all outstanding debt held by SDS, as well as new investment of $250,000 by SDS. Prior to this Agreement, SDS was the second largest holder of investment debt of the Company.
As previously reported, the Company already entered into an agreement with the Al Rajhi Group in March, 2010, for the extension of all outstanding debt held by Al Rajhi. The Al Rajhi Group is the largest holder of investment debt of the Company.
The Company also entered into a Securities Purchase Agreement with Ms. Linda F. Powers, the Chair of the Company's Board, for the purchase of restricted Common Stock. Ms. Powers purchased $650,000 of restricted Common Stock at a price per share of seventy-five cents ($0.75), and ten percent (10%) warrant coverage. Accordingly, Ms. Powers purchased 866,667 shares of the Company's restricted Common Stock and warrants for 86,667 shares of Common Stock. Prior to this purchase, Ms. Powers sold 750,000 shares of her Common Stock.
As part of the Company's ongoing strengthening of its balance sheet, the Company is using the proceeds of the sale of stock to Ms. Powers to pay down certain outstanding trade payables.
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. The Company has two broad platform technologies: dendritic cell-based vaccines and therapeutic antibodies. The Company is focusing on development of its dendritic cell vaccines. The Company's lead clinical trial is a 240 patient double blind, randomized, placebo controlled Phase II trial in GBM. The trial remains open but is not currently enrolling patients. As part of the debt restructuring and ongoing fundraising activities, the Company expects to resume enrollment in this GBM trial later in the summer. The Company also received clearance from the FDA some time ago for a 600+ patient Phase III trial in prostate cancer, and clearance from the FDA for Phase I trials in five other cancers. The Company also conducted a Phase I/II trial with DCVax® for recurrent metastatic ovarian cancer. The Company's second technology platform, involving antibodies to CXCR4, is at the late pre-clinical development stage.
For further information about clinical sites and Company information please visit the company 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®-Brain 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 uncertainties about 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, Inc.
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