February 29, 2016 1:35pm
Registered Direct Offering “assumes” exercise in full of the overallotment option to raise $10 M from existing institutional investors
Big discount and more than a “whole lot of warrants” … 2.94 M.
A "Hail Mary" ...
NW Bio has entered into definitive agreements with current institutional investors for a registered direct offering.
As part of the transaction, NWBO will sell approximately 5.88 M shares of common stock at a purchase price of $1.70 per share resulting in gross proceeds to NWBO of $10 M.
The investors will also receive warrants to purchase up to approximately 2.94 M shares of common stock with an exercise price of $2.25 per share. The warrants will have an exercise period of five years commencing on the 6-month anniversary of the warrant issuance.
In addition, Northwest granted to the investors a 60-day overallotment option to purchase up to an additional 5.88 M shares of common stock at a purchase price of $3.00 per share, for an aggregate purchase price of approximately $17.6 M. In connection with such purchase of shares pursuant to the overallotment option, the investors will receive warrants to purchase up to 2.94 M shares of NWBO's common stock with an exercise price of $4.00 per share and an exercise period of five years commencing on the 6-month anniversary of the warrant issuance.
The placement is expected to close on or about March 3, 2016, subject to satisfaction of customary closing conditions. H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the transaction.
The Bottom Line: NWBO is DOWN -14.3% or -$0.30 to $1.80 and continues to slump on increasing volume of 694.1 K shares <3 month average = 409.8 K shares> in response to its announcement of a direct offering of stock and warrants to institutional investors.
Desperation in this market!
NWBO closed Friday at $2.10.
