Northwest Biotherapeutics, Inc. (NASDAQ: NWBO) Squares With NASDAQ


Northwest Biotherapeutics, Inc. (NASDAQ: NWBO) and NASDAQ have agreed on a plan to resolve a matter that threatened Northwest Biotherapeutics’ listing on the stock market.

The matter centered on the issuance of securities to Cognate BioServices by Northwest Biotherapeutics, Inc. (NASDAQ: NWBO), which NASDAQ said violated its listing rules. As such, NWBO came up with a remediation plan on how to resolve the Cognate issue and discussed the plan with NASDAQ.

Northwest Biotherapeutics also needed to discuss with Cognate the details of the proposed remediation plan. After all the talks, NASDAQ informed Northwest Biotherapeutics that it has regained compliance for continued listing on the stock market. The controversial securities issuance matter now stands resolved.

Restricted stock payment

The matter that led NASDAQ to say that Northwest Biotherapeutics had violated its listing rules had everything to do with a compensation plan that the company entered into with partner Cognate. As part of their agreement, Northwest Biotherapeutics agreed to pay Cognate in restricted stock instead of cash.

Northwest Biotherapeutics, Inc. (NASDAQ: NWBO) considered that paying Cognate in stock would help it to conserve cash and the idea worked as the company was able to run its clinical trials at full speed. However, it would have been difficult to achieve the clinical trials fete if it was settling Cognate’s invoices in cash.

The restricted shares that Northwest Biotherapeutics issued in favor of Cognate were subject to a lengthy lockup periods. The multi-year lockup was designed to delay Cognate’s bringing of the shares to market.

However, NASDAQ faulted how Northwest Biotherapeutics, Inc. (NASDAQ: NWBO) handled the securities issuance to Cognate. One of the particular issues of concern was Northwest Biotherapeutics’ failure to register the shares despite that being part of the contractual agreement with Cognate. Nevertheless, those issues now stand resolved and NWBO can have its peace of mind.

$1.3 million in securities proceeds – Northwest Biotherapeutics, Inc. (NASDAQ: NWBO)

Meanwhile, Northwest Biotherapeutics, Inc. (NASDAQ: NWBO) is set for a nearly $1.3 million financial boost after it entered into an agreement with the holders of its warrants to exercise them. As such, the holders have accepted to convert the warrants to 3.7 million common shares of Northwest Biotherapeutics, which will yield the company some $1.3 million in gross proceeds.

The company intends to use the net proceeds from the exercised warrants to finance its clinical activities.


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