You'd think I could get a few days off from writing about Northwest Biotherapeutics (NWBO), but no.
I'll keep this brief, but there's a couple of important points to be made about Northwest Bio's announcement of an "up to" $32 million financing.
1. Northwest Bio raised $15 million by selling stock at $6.60 per share, an 8% discount to Wednesday's closing price. The $32 million haul is aspirational and assumes the single investor in the deal later decides to buy the $17 million "non transferable oversubscription option."
2. Northwest Bio claims today's financing includes no warrants. Well, that's a bit of a fib. The "non transferable oversubscription option" is a warrant, even if you don't want to call it a warrant.
From today's press release:
The Stock Purchase Agreement also provides a non-transferable Oversubscription Option for the investor to purchase up to $17 million of common stock at $7.50 per share (approximately 5% premium to the closing market price) during the twelve months following the initial closing.My finance dictionary defines a warrant this way:
A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.
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