Replies to post #575549 on NorthWest Biotherapeutics Inc (NWBO)

[LessIsMore]

you come to 33.25% percent.

PM please don't go there, I did this for a living for way too long.

Keep in mind we're talking about ANNUAL INTEREST RATE. Your 33.25% is 20 months in duration.

I have a detailed amortization schedule and I'm confident in my numbers. I do wish I had a copy of the loan agreement to fully understand this 10% premium.

[Doc logic]

Poor Man -,

Maybe $10,000,000-$13,000,000 worth of shares now might be worth 8-10 times that by the time the note is due. In that case, going this route is better for shareholders than that, just not as obvious right now with the share price where it is at and credit card interest rates that can be around 30% annually. Almost time for an upgrade to the digs and marital tension relief ; ). Best wishes.

[hoffmann6383]

But even using your numbers of total repayment equal to $13.3 million against cash received of $10 million, you come to 33.25%

False. This is not how you calculate interest rate for a loan GREATER than 1 year. It's nonsene to say a 10 year loan at a rate of 8% that pays a total of $175k over 10 years in interest and principle amounts to a 75% interest rate. This is not how the math works.

This loan is a non dilutive loan. Looking at the terms of the last loan we see:

The financing is in the form of a 22-month loan which requires no payments for 8 months, and then provides for a subsequent 14-month amortization period. The loan has a provision for prepayment, an annualized interest rate of 8% and OID of 10%. Upon announcement of the top line data (“TLD”) from the Company’s Phase III clinical trial of DCVax®-L for Glioblastoma brain cancer, the lender will have a then-springing right to exchange the outstanding balance of the loan for common shares priced at the price of the first private placement transaction following TLD less a 12% discount, and to purchase another 50% of that number of shares at the same price. This then-springing right expires 14 days after that post-TLD private placement.

I'd rather have the terms of our current loan than the prior loan. Great work by NWBO for locking in this loan before the recent liquidity issues hit the banking sector. This loan is a positive sign.