NorthWest Biotherapeutics Inc (NWBO)

[FeMike]

Well if LP at Northwest paid LP at Advent in cash, she’d have to sell those same shares to someone else to raise the cash. So those same shares have to be used to pay the bill… the issue here is simply who gets them.

I think it’s a good sign that LP at Advent is pleased to be paid by LP at Northwest in shares. It shows LP values Northwest shares as much or more than cash.

Wow Senti. You have completely missed (and by way of that, reinforced) my point.

I know you’re smarter than this so I’ll try again.

The issue is not, as you put, “simply who gets them”. The issue is that LP is getting them. Because of this, she has absolutely no incentive to support the share price while she dilutes, because she is getting the diluted shares. If anyone at all besides LP were getting those shares, she would have incentive to raise the share price and sell those shares at higher prices (less shares) because she is also being diluted. Unfortunately the opposite is true. She is getting the shares, so her only motive is to keep the share price low as long as possible so she gets more shares.

As a result, shareholders are losing return from massive dilution while Linda Powerless becomes more and more wealthy by way of paying herself in shares rather than supporting the stock price and paying her debt in cash.