NorthWest Biotherapeutics Inc (NWBO)

[JerryCampbell]

You have missed a key math point. The number of shares received via cashless exercise varies with price. The higher the price, the more shares received. That means that a short squeeze scenario does not imply a signficant advantage relative to exercising with cash.

cashless shares = [(A - B) * X ] / A
A = market price
B = strike price
X = number of shares covered by warrant

Let's assume that our holder has 1,000,000 warrants all with a strike price of $0.30, and vary the market price.

A = $0.50 ((.5 - .3) * 1m) / .5 = 400,000 shares
A = $1.00 ((1 - .3) * 1m) / 1 = 700,000 shares
A = $5.00 ((5 - .3) * 1m) / 5 = 940,000 shares