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Northwest Biotherapeutics (NWBO -4.2%) falls hard after announcing a $10M direct placement...

Northwest Biotherapeutics (NWBO -4.2%) falls hard after announcing a $10M direct placement (price is $3.90) with "one healthcare-dedicated institutional investor" who also received warrant coverage of 40% (exercise price $4.29) for a term of five years.
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Comments (6)
  • getgl
    , contributor
    Comments (619) | Send Message
     
    Not shocked by this. Happens to small biotech companies all the time. Hence why it is always better to scale into positions bit by bit. The company has a very promising drug, which is what counts.
    18 Apr 2013, 11:48 AM Reply Like
  • ribking1
    , contributor
    Comments (9) | Send Message
     
    I will just be glad when they release some half way good news instead of money problems. Already lost over half there value,lets see iff they can get it back down to that .40 cent mark,and steal everybodys money!
    18 Apr 2013, 12:29 PM Reply Like
  • sandyb
    , contributor
    Comments (61) | Send Message
     
    The vaccines seem to be the wave of the future-been actually waiting for the price to come down, hard, to buy more. The upside is that another investor thinks its worth the wait and investment-a large investment at that.
    18 Apr 2013, 01:03 PM Reply Like
  • Special_Sit
    , contributor
    Comments (166) | Send Message
     
    Actually, its cell therapy, not a vaccine. Management somehow overlooks this distinction.
    18 Apr 2013, 11:35 PM Reply Like
  • ControlledRisk
    , contributor
    Comments (280) | Send Message
     
    I believe in this company, but wonder whether good news, product approval and launch will keep ahead of the dilution. It's a race between making money and being diluted out of any significant gain.
    18 Apr 2013, 05:53 PM Reply Like
  • Special_Sit
    , contributor
    Comments (166) | Send Message
     
    You'd have to have been blind and ignorant not to see this coming! As I have pointed orput before, the company had virtually no cash. Then, they start a peculiar new habit of issuing a regular series of upbeat news (like the one parient who is still alive after 10 years), obviously to hype the stock, and now it is crystal clear why. I sold out early in the year, liking the science but not the finances. There is likely to be even more dilution. A typical oncology trial this size can easily run $80-100M. Look up the cost of a CT and you'll see a big cost driver right there (CT's are used to folloe disease progression). NWBO may have great technological approach to treating GBM, but they are cash poor where cash is sorely needed. Not the right time to buy, IMO.
    18 Apr 2013, 11:33 PM Reply Like
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