NorthWest Biotherapeutics Inc (NWBO)

[sentiment_stocks]

NWBO had Cognate nicely scaled up with no income in place as NWBO remained blinded…..we ramped up too early and in the end we lost it and all the value we invested….or should I say Linda lost it (as we never owned it) because there was no income to pay the wages.

I'd suggest that NWBO shareholders (which includes LP) lost as well because Northwest still had to pay Cognate for clean rooms each month that we weren't able to use.

However, a good portion of those payments was made with shares and warrants, and most of those did not remain with Cognate. They gave back their 50 million shares (part of the Series B preferred shares given them for debt owed), never exercised on the 50 million warrants that accompanied those shares (so they gave them up), paid LP the 29 or 30 million shares and warrants (from the Series A preferred) they were given when Cognate management bought out LP (financed by investors Tennenbaum of Black Rock, and Medivate) because they didn't have enough cash. The value on that would have been about $10 million for the shares (share price was about $0.33 in Feb 2018) and around $4 million for the warrants (exercise price was something like $0.20). LP also loaned Northwest about $5.4 million in cash soon after that transaction - a loan that was supposed to last about two weeks, but instead Northwest paid her back (with interest and more warrants) about a year later. So if I were to guess, LP was paid about $10 + $4 + $6 = $20 million for Cognate (maybe, I am guessing and don't know). And then three years later, management sold Cognate for $870 million. I would suggest that LP lost out on that deal. And a good portion of that deal just gave her more investment into Northwest, which suggests which basket of eggs LP thinks contains the golden ones.