Replies to post #229366 on NorthWest Biotherapeutics Inc (NWBO)

[WojD40]

Reading between the lines, it appears that at least one of the SAPs has been approved by the regulators, no?

Also, reading of the 52 million shares owed being reduced down to 12 million reminded me of your comment about Linda being a corporate lawyer and their general tendency to come after the sockets once they've ripped your eyes out. I think this is an outstanding settlement.

[notbrad]

The $10M contingent/deferred payable is a positive. I thought it may help to summarize the Cognate deal as follows:

NWBO owes Cognate	            52,000,000 	shares 
 Cognate gives up entitled shares    40,000,000 	shares 
 Applied price per share (guess)	    0.33 	 
 Value of shares foregone	   $13,200,000 	 
 		 
 NWBO deferred payment- due 2020	     1,200,000 	 
 NWBO upfront payment - now	     2,000,000 	 
 Payment to Cognate upon approval    10,000,000 
     Total	                   $13,200,000 	 
 		 
 Reduced billing from Cognate 	   $10,000,000  
 

There are basically 2 observations: (1) Cognate decided to accept today's cash value for the 40M shares. This is technically not de-risking their exposure to NBWO because they are getting only $2M in immediate payment for their total exposure valued at $13,200,000. If the trial fails, they lose $11.2M; (2) The $10M reduction in billings is a net give-away to NWBO.


Not sure I understand this deal at all. If DCVax-L is a success, Cognate will recoup $11.2M - nothing more. If the trial fails, they will get nothing at all if you assume NWBO goes bankrupt (unless Cognate sees value and priority in claims on the IP for Direct). I'm puzzled, but looks like an overall great deal for NWBO. Why would Blackstone allow it?

[maverick_1]

Deferring the $10 million payable until after approval is a very good sign and vote of confidence by Cognate.'

Really hard to disagree with the above versus the past.

Dust off the yacht order .

DIFFERENT STROKES FOR DIFFERENT FOLKS