BETHESDA, Md., Oct. 2 /PRNewswire-FirstCall/ -- Northwest Biotherapeutics, Inc. (OTC Bulletin Board: NWBO; AIM: NWBT and NWBS), today announced that it has entered into a Loan Agreement and Promissory Note (the "Note") with SDS Capital Group SPC, Ltd ("SDS"). Under the Note, SDS has loaned the Company US$1,000,000. The Note is an unsecured obligation of the Company and accrues interest at the rate of 12% per year. The term of the Note is six months, with a maturity date of April 1, 2009. The Note may not be prepaid without the consent of SDS. The Note contains customary representations, warranties, and covenants. In connection with the Note, the Company has issued to SDS a warrant (the "Investment Warrant") to purchase up to 299,046 shares of the Company's common stock at an exercise price equal to US $0.53 per share, which was the closing price of the Company's common stock on the AIM market of the London Stock Exchange on October 1, 2008. The Investment Warrant is exercisable immediately, and expires 5 years from the date of issuance.
In addition to the Investment Warrant, under the terms of the Note, the Company issued SDS an additional warrant (the "Placement Warrant") to purchase up to 398,729 shares of the Company's common stock at an exercise price equal to US $0.53 per share. The Placement Warrant is on the same terms and conditions and in the same form as the Investment Warrant. Accordingly, the Placement Warrant is also exercisable immediately and expires 5 years after issuance.
The US$1,000,000 loan received by the Company will be sufficient to fund its cash needs into November 2008. The Company remains in advanced stage negotiations with several different providers for additional near-term funding of at least US$1,000,000, and for further financing transactions, which it hopes to complete by the end of the year.
The Company will need to raise additional capital to fund its clinical
trials and other operating activities and to
|SOURCE Northwest Biotherapeutics, Inc.|
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