NorthWest Biotherapeutics Inc (NWBO)

[Poor Man -]

This isn’t a matter of outsourcing to fill a temporary or small function, or even transparency per se, this is a matter of equitable dealings.

Had NWBO established a subsidiary to manufacture the vaccine to include on its balance sheet the cap ex to build out the facility and accounted for all the startup costs — all funded by NWB0 shareholders — and then hired Advent to just provide employee services under a service contract, that would be the typical business relationship. And the new NWBO subsidiary would then accrue a return on investment that would benefit NWBO shareholders. I’ll add that since this is a startup, there’s no need for an outside service provider - the NWBO s could simply make all new hires employees of the new subsidiary.

However, NWBO has turned this type of business relationship completely on its head. Instead, NWBO shareholders pays for the space; purchased the assets, and funded the start up costs for Advent - and even have overlapping management and governance. It is Advent and it’s shareholder (Toucan) that will benefit from the profits and value of that business, not NWBO’s shareholders that actually funded the business.

There’s no reason that NWBO shareholders are asked to fund a new business, but not have an ownership stake.