NorthWest Biotherapeutics Inc (NWBO)

[koman]

The buyers of Northwest's convertible notes want the company's stock price to decline before Feb. 15, 2015, because a lower stock price will also drop the conversion price of the debt when it resets. A lower conversion price means note holders get more and cheaper Northwest shares to sell when they convert the notes. The Northwest debt holders also make extra money by shorting the stock and covering lower.

Let's say the reset on Northwest's debt took place last Friday instead of on Feb. 15, 2015. Northwest shares closed Friday at $5.45, so 110% of $5.45 is $5.99. That's lower than the $7.30 original conversion price, so the reset price on the notes would be $5.99. If holders converted $17.5 million in notes at $7.30, they'd receive 2.4 million shares of Northwest stock, in aggregate. At $5.99, the $17.5 million in debt converts to 2.9 million shares, or a 20% increase in dilution.

http://www.thestreet.com/story/12885672/1/northwest-bios-almost-toxic-debt-raise-responsible-for-stock-slide.html?puc=yahoo&cm_ven=YAHOO

This is a quote from AF and may explain some of the recent price action. I'm expecting some short covering next week barring any news beforehand.