NorthWest Biotherapeutics Inc (NWBO)

[Sojourner55]

Reading the PR again, the terms of the "transaction" seem exceptionally favourable to NWBO

"The lease-back of the manufacturing facility will initially be for 20 years, with a renewal for a second 20 years on the same terms at the Company’s option. The rent is determined by valuing the entire manufacturing facility as a warehouse. No rent is payable for the first year. Starting in year two, the rent is approximately £5.76 per square foot per year, with limited adjustments once every five years.

The lease includes substantial adjacent areas, including for surface parking of 600 vehicles and for equipment, plant and facilities that support or are related to operations in the manufacturing facility. The Company believes that, with internal buildout of further manufacturing suites inside this facility, it will potentially be capable of supporting production of DCVax® products for up to 10,000 patients per year"

Now what is the incentive to provide such terms and what is there to gain by the buyer? If there was such demand in the Sawston area as a biotech hub, they could command better rates and why give a 40 yr option?

IMO, this is a two part transaction. The buyer is not a real estate developer but a major multinational pharma. Part 1 of the transaction is stealth funding for NWBO to reach the finish line, as some have surmised. Part two could be announced anytime of licensing deals and subsequent buyout on confirmation of top line. The buyer will take this to approval.

I know some have suggested this scenario but thinking out loud this makes a lot of sense.