NorthWest Biotherapeutics Inc (NWBO)

[sbnyc]

I just don’t think this is true. In a buyout for stock, you have to consider the shares outstanding of the two companies, no?

Let’s make up a crazy scenario: Say fantastically and hypothetically - in a distant dream - completely ridiculously......Merck were to offer NWBO $40B in a buyout.

(KITE was bought for $12B and they were in phase I/II testing with a narrower market potential)

Since Merck is approximately $80/share, they need 500 million shares to accommodate for $40B ($80x500m = $40B).

(FYI: MRK currently has 2.5B shares outstanding)

Now, how do you distribute that 500 million shares to NWBO shareholders? Well, since NWBO has about a billion shares outstanding (after all warrants/options are exercised), that would mean half of a Merck share for every share of NWBO. (.5x1B= 500m)

So hypothetically under this scenario, if you owned 1000 shares in NWBO (Current Value: $250) you would now instead own 500 shares of MRK @80/share (Current Value: $40,000)

All hypothetical of course. And If I’m wrong about how all this works, Im happy to retract.



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