Convertibles sold at a 10% discount convert at 20% discount to market
By Devika Patel
Knoxville, Tenn., May 23 - Northwest Biotherapeutics, Inc. settled an $800,000 tranche of a $3 million private placement of 10% convertible notes on May 17, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was negotiated on Dec. 14, 2010.
The notes were sold at a 10% original issue discount. They convert to common stock at a 20% discount to the market price at the time of conversion.
The investors also received 22% warrant coverage. Each five-year warrant is exercisable at $0.35, a 25% premium to the May 16 closing share price of $0.28.
Northwest is a development-stage biotechnology company based in Bothell, Wash.
| Issuer: | Northwest Biotherapeutics, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $3 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | 10% discount
|
| Conversion price: | 20% discount to the market price at the time of conversion
|
| Warrants: | 22% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.35
|
| Pricing date: | Dec. 14, 2010
|
| Settlement date: | May 17 (for $800,000)
|
| Stock symbol: | OTCBB: NWBO
|
| Stock price: | $0.28 at close May 16
|
| Market capitalization: | $41.92 million
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