Replies to post #289386 on NorthWest Biotherapeutics Inc (NWBO)

[biosectinvestor]

I like your thinking but in my experience deals of all sorts, unless it is an actual buyout, would rarely and more likely never dump cash into the pockets of small investors when that money is really needed by the company. Such equity buys are always direct so that the money goes to work. It’s just bad business and imprudent. If they are “investing”, they want that money to go to creating manufacturing facilities, paying employees, hiring marketers, and advancing the name of the company and product into the marketplace.

But if they were advancing funds on a milestone basis for very particular rights to the product, to market a combination therapy, perhaps with Keytruda, let’s say under a Merck created brand name, for a geographic region, that might be more likely to be acceptable to me.

[Sankarad1]

We need to still accept that NWBO is a much smaller entity than any buyer like Merck. Such buyers will not like to have buy without having to get absolute control on the company. So, 30% for the BP may not be a viable proposition. Possibly a 70% for BP may be workable for the buyer.

At the same time, it should be seen what kind of control do NWBO folks will get with minority stake. They should be able to cobble out a deal, but it is still going to be the BP that will hold the control of the company.

JMHO