Company Update (NASDAQ:NWBO): Here’s Why Northwest Biotherapeutics, Inc Shares Are Tumbling 20% Today
Northwest Biotherapeutics, Inc (NASDAQ:NWBO) announced that it has entered into definitive agreements with an institutional investor to sell an aggregate of approximately $5.0 million of shares of its common stock in a registered direct offering. The closing of the offering is expected to take place on or about October 26, 2016, subject to the satisfaction of customary closing conditions.
Under the terms of the offering, the Company will sell approximately 14 million shares of its common stock at a purchase price of $0.38 per share, a 30% discount to yesterday’s closing price. Northwest currently intends to use the net proceeds from the offering to fund its upcoming Phase II clinical trials.
The public offering would dilute shareholders’ investments, and as such Northwest Biotherapeutics shares are currently dropping nearly 20% to $0.43 in Friday’s trading session. NWBO has a 1-year high of $5.30 and a 1-year low of $0.32. The stock’s 50-day moving average is $0.48 and its 200-day moving average is $0.73.
Northwest Biotherapeutics, Inc. is a clinical stage biotechnology company. It engages in the provision of developing cancer vaccines designed to treat a solid tumor cancers. The company was founded by Alton L. Boynton on March 18, 1996 and is headquartered in Bethesda, MD.