NorthWest Biotherapeutics Inc (NWBO)

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Northwest Biotherapeutics Inc (NASDAQ:NWBO) shares were up 4.33% on Wednesday to $0.547 but could give up its gains when it returns to the OTC Markets.

http://smallcapexclusive.com/delisting-underway-northwest-biotherapeutics-inc-nasdaqnwbo-shares/

This follows Northwest Biotherapeutics Inc receiving a letter from the Nasdaq Staff on November 7, 2016 indicating that they determined to aggregate a series of financing transactions that were completed between May 15, 2016 and October 13, 2016, although the transactions were in many cases small and diverse, and involved a number of unrelated parties. The company engaged in remediation discussions with the Nasdaq Staff who ultimately determined not to accept the Company’s proposed plan of remediation.

The Company’s Board of Directors considered a variety of factors and reached a unanimous decision for the Company to voluntarily withdraw its listing on Nasdaq and undertake the actions necessary to trade on the OTCQB, rather than seeking to remain on Nasdaq and go through the hearing process. Such factors include the likely expenses and uncertainty associated with the hearing process and seeking to regain compliance with Nasdaq Listing Rules, the value to the Company of being able to raise and accept financing to proceed with multiple Phase 2 trials while also completing the Phase 3 trial,” the company explained in the press release.

With that, a bit of investor jitters could be expected as the company moves to delist from the Nasdaq and transition to OTC Markets. However, operations remain mostly the same and management’s decision to delist instead of pursuing the case makes sense from a financial standpoint in terms of reducing expenses and turning company focus away from ongoing clinical trials. As such, a rebound could be in the cards for Northwest Biotherapeutics Inc at some point after their listing in the OTC Markets but not after a potential dip to bargain prices.

DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.
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EDWARD TARPIN

Edward Tarpin likes fishing, beer and small caps with healthy balance sheets. He can usually be found somewhere in between a 10Q and a 10K, and is the go to guy for risk management driven portfolio construction.