I am a simple man and have had some success in investing over the years. I have been in a number of businesses working for someone else as well as in my own businesses with varying degrees of success. To say that NWBO and its management are an extreme outlier in my experience is stretching euphemism. This whole deal with LP appears to be gross self dealing and aggrandizement with a rubber stamping BOD. I say "appears" because I admit I don't have all the facts. Let me state what I do know.
I am an accredited investor and have thus far participated in two funding deals, the latest being the April 2, 2020 raise. Essentially, I was offered extending my soon to be expiring warrants in return for buying stock from the company with the kicker that my warrants would be extended for one year and the strike price would be reduced from $0.30 to $0.22. Essentially I was lucky in that this extension did not cost me any money. I simply used the market place to fund my deal and of course NWBO. In terms of number of shares were concerned, I had the same number as I did before the deal. About the same cash position too including broker's fee for the transfer as I did before. The only change was that I got an additional year on my warrants with a reduced strike price. Of course, this involved risk but luckily I ended up with free extended/reduced exercise price warrants. So in a sense, I should not be upset about Linda's deal......but I am.
When I was offered this deal, I asked if there were other possibilities. There were none except how much funding I could put up which would then dictate what I would receive in return. I had some back and forth negotiations and I finally got the deal that sealed it for me. I was never offered the LP deal. Why? I don't know of any other accredited investor who was offered a similar deal. Would I have taken it? Yes, in a heartbeat.
Essentially, LP got her expiring warrants, just like me, extended. However, she got them extended for 3 years and not one year like me and other accredited investors. In my deal, I actually transferred ascertainable value-- cash--in return for extension. What value did LP transfer? Restrictions on exercising her extended ( and other??) warrants for 6 months and then obtaining 2 and 1/2 years exercise period, essentially an extension of 3 years. Giving up the right to exercise warrants for 6 months has very questionable value and is definitely not commensurate with the extension she obtained. She gave no ascertainable value like the rest of the accredited investors. Bottom line, at least in my view, is that she gave up very little if anything with such a restriction. Who knows what the value of even stellar TLD is wrt market considerations. How powerful are the dark forces? The market may not reflect "stellar" value based just on TLD. How do we know that TLD will be released within the 6 month period? Because she gave guidance?
The market maybe waiting for approval or even commercialization before assigning "stellar" value. The money to be made is greater in anticipation of approvals after TLD is released. With essentially 3 year warrants, LP has a lot of time to obtain stellar" value for her warrants. In my view, the 6 month exercise restriction is complete BS and a disgrace especially insofar as other accredited investors are concerned. The BOD should be ashamed of themselves, rubber stamping a deal like this. Aren't they supposed to protect the interests of ALL the owners?
Further, besides not extending such a deal to other investors, NWBO at the very least did not explain why LP and no one else was entitled to such an essentially "risk less" deal. What makes LP so special that she can get extensions on her expired( bad bet ) warrants for free? Six month restriction? Gimme a break. Does a hopeful virtual ASM reward her with this special deal? NWBO will still need funding especially during the 6 months restrictive period. More dilution is definitely going to put the lid on any share appreciation even if TLD is released during this time period.
In my view, LP and, indeed, all NWBO management should avoid even the appearance of favored, greedy self dealing aggrandizement. This sure looks like it. It is difficult to give LP the benefit of the doubt without coming clean on this. Investors need more transparency but this latest "event" promises only more of the same. What a shame. I, for one, find it difficult to understand how even the most ardent apologists for NWBO management can countenance something like this. End of rant.
