NorthWest Biotherapeutics Inc (NWBO)

[Horseb4CarT]

If an acquirer does an all stock deal, which I would prefer at this time, when the deal closes we would get shares of the acquirer’s stock at the deal ratio and we would not have to have a taxable event until we sell shares.

For example if Merck were to acquire nwbo at let’s say 3 nwbo shares for each Merck share (at around today’s Merck share price we would be getting the equivalent of $25-$30 per nwbo share, and get cash for any fractional share of Merck left over like if you remain with one or two nwbo shares in the stock swap. You would owe tax on the fractional share cash received for shares in a taxable account. No tax for nwbo shares in traditional ira other than usual tax of withdrawals out of the ira. Roth IRA shares are the big winners since no tax applies under current rules.

So the tax timing of shares in the taxable accounts needs care and taxable events are when you sell some of your Merck shares against your original basis adjusted for the stock swap ratio.