Replies to post #347964 on NorthWest Biotherapeutics Inc (NWBO)

[biosectinvestor]

These circumstances typically have other internal controls and oversight. There can’t be an automatic repayment when the fund’s are not there just because she is CEO, and they can’t ignore that they defaulted on that loan either.

You can try to manipulate impressions anyway you want but none of that is necessarily unusual. I’ve seen other tiny companies where executives and board members lent money, and then it was converted to options and warrants or rolled forward with equity sweeteners.

Most of these sorts of transactions are quite routine for tiny companies where persons involved have large resources. Typically their increased investment is not considered a “negative”.

[10baggerz]

While you might be right about it being potentially fraudulent or biosect might be right about it being handled via the proper internal procedure...

I’d like to point out the fact that LP clearly wants more warrants!

IMO this just further reassures me that the primary endpoint is met and LP knows it! Another week closer to the day LP becomes a billionaire and somehow all the longs feel nothing but love for her.

[sentiment_stocks]

I believe she loaned that money to Northwest after she'd received her portion of the Cognate sale. During that same time, the company was initially looking to refinance the Sawston property, and instead, chose to sell the property, and delaying receipt of those much needed funds.

In fact, a quick look back at the cash on hand:
$248k - 3rd Q 2018
$1.60m - 2nd Q 2018
$198k - 1st Q (during which the loan was made)

Such a low level of funds indicates that paying back the $5.4m the company owed LP had to be delayed much longer then had been initially anticipated. A I recall, she initially gave them $4.4m and then had to add an additional $1m to the loan.

This loan still remained unpaid in the first quarter of 2019, despite the cash the company received for the Sawston sale. Finally by the 2nd quarter of 2019 (June 30, 2019) $4.7m of the $5.4m was paid. And during that time (in May 2019), it would appear LP promptly started moving those funds into InmuneBio, because in May 2019, she'd bought some 700k shares in Inmune Bio. Inmune initially looked to sell 2.5 million shares in August 2018... and if LP had wished to take part in that deal using any part of that $5.4 million loan to NWBO, she would had to wait until May 2019 to do so.

https://sec.report/CIK/0001289624/Insider-Trades
https://www.sec.gov/Archives/edgar/data/1711754/000164033418001703/inmune_s1.htm

Therefore, from the SEC filings, the company has indicated multiple times that the loan was intended to be a short term, 15 day or so loan that turned into a year and 3 months or more loan. And when one receives that kind of influx of cash, one usually has plans on how to allocate it. And it would appear that keeping it in a loan form with NWBO was not part of that initial plan... but as you do indicate, it was her decision to do so. A quick look at the Qs during that same time, and their very low cash on hand would indicate why she chose to not call in the payment of her loan.

She was paid a reasonable interest fee (10%?) for the loan, and I would agree that she was definitely given a very generous number of warrants in the company... a company that you (and others) have insisted for years has a product that does not even work. That generous amount was likely to make up for the fact that the company had to hold off on paying back that short term loan for more than a year.