More Downside for Northwest Biotherapeutics Inc (NASDAQ:NWBO) Shares?


Northwest Biotherapeutics Inc (NASDAQ:NWBO) shares slipped 12.34% on Friday to $0.490 and flat in after-hours trading. The company has a market cap of $53.13 million at 123.69 million shares outstanding. Share prices have been trading in a 52-week range of $0.32 to $5.19.

Northwest Biotherapeutics Inc is a biotechnology company that is focused on developing immunotherapy products to treat cancer. Its lead product DCVax-L is designed to cover all solid tumor cancers in which the tumors can be surgically removed and is in an ongoing Phase III trial for diagnosed Glioblastome multiforme. Another product DCVax-Direct is designed for all solid tumor cancers and is being studied in a 60-patient Phase I/II trial for all types of inoperable solid tumors. The company’s platform technology, DCVax, uses activated dendritic cells to mobilize a patient’s own immune system, including T cells, B cells and antibodies and natural killer cells, among others to attack cancer cells to attack their cancer.

A couple of weeks back, Northwest Biotherapeutics Inc filed quarterly report on form 10-Q, but received a letter from Nasdaq indicating that certain of the Company’s financing transactions did not comply with Nasdaq’s Listing Rule 5635(d). Nasdaq staff is still looking into a series of transactions that were completed  between May 15, 2016 and October 13, 2016 to assess whether the 20% threshold for shareholder approval had been triggered for issuances priced below the applicable market price. Northwest Biotherapeutics Inc assured that they are in discussions with the Nasdaq Staff regarding available avenues for remediation to be submitted by November 18.

Throughout this process, Northwest Biotherapeutics Inc has entered into a debt financing through Promissory Note Agreements for $2.5 million principal amount. These notes are not convertible but have one-year maturity and 10% annual interest, with the interest payable at maturity.

Last week, the company announced that it joined the University Medical Center of the Johannes Gutenberg University Mainz in Germany in announcing a Phase II clinical trial program combining DCVax-L and Pembrolizumab for colorectal cancer with liver metastases.

The trial will be conducted as an investigator-initiated trial led by the University of Mainz, with Northwest Biotherapeutics Inc providing DCVax-L products. It will combine a broad spectrum personalized vaccine with a highly targeted checkpoint inhibitor drug, in contrast to most combination clinical trials having no broad spectrum introduced.

More than 2 years of planning and work have gone into developing this Phase II trial program.  We are excited to work with a leading team to test the potential synergies of combining broad spectrum DCVax-L and targeted Pembrolizumab to treat a heterogeneous and challenging disease such as metastatic colorectal cancer,” remarked Linda Powers, CEO of Northwest Biotherapeutics Inc.

Northwest Biotherapeutics Inc is awaiting response from Nasdaq staff but could be looking at a potential delisting or a 180-day extension to get its reports in order until the end of the year or early next year. A reverse split could be possible, which could lend further downside to stock prices.

The daily chart of Northwest Biotherapeutics Inc has been on a decline, although it appears to have tempered the slide for the time being. Volume has peaked in September and October, likely around the time that the company entered debt financing. Not even the updates in its clinical trials in the succeeding weeks was enough to spur enough upside momentum for the stock. This suggests that investors are more downside biased on Northwest Biotherapeutics Inc rather than bullish. By the looks of it, their Nasdaq delisting could expose a lot of downside, possibly even a break below the yearly lows.

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