Pursuant to this prospectus
supplement and the accompanying prospectus, Northwest Biotherapeutics, Inc. (the “Company
,
” “we”
or “us”) is offering for sale, directly to selected investors, 8,750,000 shares of our common stock par value $0.001,
at a price of $0.20 per share. We are also offering Class A Common Stock Purchase Warrants to purchase up to 4,375,000 shares of
Common Stock at an exercise price of $0.22 per share (the “Class A Warrants” or the “Warrants”). The Class
A Warrants are exercisable immediately, subject to the 4.99% (or, at election of holder, 9.99%) beneficial ownership limit. The
Class A Warrants are exercisable for five years from the date of issuance. We will receive gross proceeds of approximately $1,750,000
from this offering.
Our common stock is
traded on the OTCQB tier of the OTC Markets under the symbol “NWBO”. On September 19, 2017, the closing sale price of our common stock was $0.22 per
share.
We have retained H.C. Wainwright & Co., LLC as placement agent in connection with this offering. The placement agent
has no obligation to buy any of the securities from us or to arrange for this purchase or sale of any specific number or dollar
amount of securities. See “Plan of Distribution” on page S-10 of this prospectus supplement for more information regarding
these arrangements.
Cautionary
Statement Regarding Forward-Looking Statements
The SEC encourages
companies to disclose forward-looking information so that investors can better understand a company’s future prospects and
make informed investment decisions. This prospectus supplement, the accompanying prospectus and the documents we have filed with
the SEC that are incorporated herein and therein by reference contain such forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical facts, included or incorporated
in this prospectus regarding our strategy, future operations, financial position, future revenues, projected costs, prospects,
plans and objectives of management are forward-looking statements.
The words “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “may,” “plans,”
“projects,” “will,” “would” and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these identifying words. We cannot guarantee that we actually will
achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance
on our forward-looking statements. There are a number of important factors that could cause our actual results to differ materially
from those indicated by these forward-looking statements. These important factors include the factors that we identify in the documents
we incorporate by reference in this prospectus supplement and the prospectus, as well as other information we include or incorporate
by reference in this prospectus supplement and the prospectus. Many factors could affect our actual results, including those factors
described under “Risk Factors” in our Form 10-K for the year ended December 31, 2016, incorporated by reference herein.
You should read these factors and other cautionary statements made in this prospectus supplement and the accompanying prospectus
and the documents incorporated herein by reference. We do not assume any obligation to update any forward-looking statements made
by us. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements,
including, among other things:
|
·
|
risks related to our abilities to carry out intended manufacturing expansions;
|
|
·
|
our ability to raise additional capital;
|
|
·
|
risks related to our ability to enroll patients in clinical trials and complete the trials on a timely basis;
|
|
·
|
risks related to the progress, timing and results of clinical trials and research and development efforts involving our product
candidates generally;
|
|
·
|
uncertainties about the clinical trials process;
|
|
·
|
uncertainties about the timely performance of third parties;
|
|
·
|
risks related to whether our products will demonstrate safety and efficacy;
|
|
·
|
risks related to our commercialization efforts and commercial opportunity for our DCVax product;
|
|
·
|
risks related to the submission of applications for and receipt of regulatory clearances and approvals;
|
|
·
|
risks related to our plans to conduct future clinical trials or research and development efforts;
|
|
·
|
risks related to our ability to carry out our Hospital Exemption program (in Germany);
|
|
·
|
risks related to our dependence upon key personnel and the need for additional financing;
|
|
·
|
risks related to possible reimbursement and pricing;
|
|
·
|
uncertainties about estimates of the potential market opportunity for our product candidates;
|
|
·
|
uncertainties about our estimated expenditures and projected cash needs;
|
|
·
|
uncertainties about our expectations about partnering, licensing and marketing; and
|
|
·
|
the use of proceeds from this offering.
|
Please also see the
discussion of risks and uncertainties under “Risk Factors” beginning on page 3 of the accompanying prospectus, in our
most recent Annual Report on Form 10-K, and in our other reports filed with the SEC, incorporated herein by reference.
You should not place
undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements
speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions
are incorrect, our actual results may differ significantly from the results that we express in or imply by any of our forward-looking
statements. These and other risks are detailed in this prospectus supplement, in the accompanying prospectus, in the documents
that we incorporate by reference into this prospectus supplement and the accompanying prospectus and in other documents that we
file with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking
statements after the date of this prospectus supplement to reflect future events or circumstances. We qualify any and all of our
forward-looking statements by these cautionary factors.
In light of these assumptions,
risks and uncertainties, the results and events discussed in the forward-looking statements contained in this prospectus supplement
or the accompanying prospectus or in any document incorporated herein or therein by reference might not occur. Investors are cautioned
not to place undue reliance on the forward-looking statements, which speak only as of the date of this prospectus supplement or
the accompanying prospectus or the date of the document incorporated by reference herein or therein. We are not under any obligation,
and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. All subsequent forward-looking statements attributable to us or to any person
acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
Prospectus
Supplement Summary
This summary highlights
certain information about this offering and selected information contained elsewhere in or incorporated by reference into this
prospectus supplement and the accompanying prospectus. This summary is not complete and does not contain all of the information
that you should consider before deciding whether to invest in shares of our common stock and warrants. For a more complete understanding
of our Company and this offering, we encourage you to read and consider carefully the more detailed information in this prospectus
supplement and the accompanying prospectus, including the information incorporated by reference into this prospectus supplement
and the accompanying prospectus, and the information referred to under the heading “RISK FACTORS” in this prospectus
supplement on page S-3 and on page 3 of the accompanying prospectus, and in the documents incorporated by reference into this prospectus
supplement and the accompanying prospectus.
Securities offered
|
|
An aggregate of 8,750,000 shares of Common Stock and Class A Warrants to purchase up to 4,375,000 shares of Common Stock are being offered.
|
|
|
|
|
|
See “DESCRIPTION OF SECURITIES” on page S-7 for a complete description of the factors you should consider carefully before deciding to invest in our securities.
|
|
|
|
Shares of Common Stock Outstanding After Offering
|
|
307,253,437 shares of Common Stock.
(1)
|
|
|
|
How to Exercise Warrants
|
|
The Warrants will be evidenced by warrant certificates and may be exercised by completing the
Exercise Notice form on the back of the warrant certificate and delivering it, together with payment of the exercise price,
to Northwest Biotherapeutics, Inc., at the email address indicated by the company or by postal mail to 4800 Montgomery Lane,
Suite 800, Bethesda, MD 20814, Attention: Chief Executive Officer. Payment of the exercise price of the Warrants
must be made by check or wire transfer or, in certain circumstances, by cashless exercise.
|
|
|
|
Other Terms of Warrants
|
|
The Class A Warrant entitles the holder to purchase one share of Common Stock at a price of $0.22 per share and will expire five (5) years from the date of issuance and may not be exercised after that date.
|
|
|
|
|
|
The number of shares issuable upon the exercise of the Warrants and the exercise price per share will be proportionally adjusted in the event of a stock split, stock dividend, combination, or recapitalization of the common shares. See “DESCRIPTION OF SECURITIES
.
”
|
|
|
|
Risk Factors
|
|
Investing in our common shares and warrants involves a high degree of risk. Please read the information contained in and incorporated by reference under the heading “RISK FACTORS” on page S-3 of this prospectus supplement and page 3 of the accompanying prospectus, and under similar headings in the other documents, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, that are incorporated by reference into this prospectus supplement and the accompanying prospectus.
|
|
|
|
Use of proceeds
|
|
We estimate that our net proceeds from the offering will be approximately $1,587,500, after deducting the placement agent fee and estimated expenses payable by us in connection with such closing.
|
|
|
|
|
|
We intend to use the net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures, research and development expenditures, regulatory affairs expenditures, clinical trial expenditures, acquisitions of new technologies and investments. See “USE OF PROCEEDS” on page S-6 of this prospectus supplement.
|
Market for the Common Stock
|
|
Our Common Stock is listed on the OTCQB Venture Market (the “OTCQB”) tier of the OTC Markets under the symbol “NWBO”. Certain of our warrants are also listed on the OTCQB tier of the OTC Markets under the symbol “NWBOW”. However, there is no established public trading market for the Warrants in this offering, and we do not expect a market to develop.
|
(1)
The number of shares of our Common Stock to be
outstanding after this offering is based on approximately 298,503,437 shares outstanding as of September 19, 2017.
Risk
Factors
Investing in our
securities involves risk. Before deciding whether to invest in our securities, you should consider carefully the risks and uncertainties
and assumptions discussed under the heading “Risk Factors” included in our most recent annual report on Form 10-K and
our quarterly reports on Form 10-Q, which are on file with the SEC and are incorporated herein by reference, and which may be amended,
supplemented or superseded from time to time by other reports we file with the SEC in the future. There may be other unknown or
unpredictable economic, business, competitive, regulatory or other factors that could have material adverse effects on our future
results. If any of these risks actually occurs, our business, business prospects, financial condition or results of operations
could be seriously harmed. This could cause the trading price of our common stock to decline, resulting in a loss of all or part
of your investment. Please also read carefully the section above entitled “Cautionary Statement Regarding Forward-Looking
Statements.”
Risks Related to our Operations
The business of the Company is subject to
a number of risks. A description of the risks related to our business and our industry is set forth under the caption “Risk
Factors—Risks Related to Our Operations” in our recent annual report on Form 10-K and most recent Form 10-Q, as may
be amended, supplemented or superseded from time to time by other reports we file with the SEC, each of which is incorporated herein
by reference.
Risks Related to the Offered Securities
The market price of our common stock
is volatile and can be adversely affected by several factors.
The share prices of
publicly traded biotechnology and emerging pharmaceutical companies, particularly companies without consistent product revenues
and earnings, can be highly volatile and are likely to remain highly volatile in the future. The price which investors may realize
in sales of their shares of our common stock may be materially different than the price at which our common stock is quoted, and
will be influenced by a large number of factors, some specific to us and our operations, and some unrelated to our operations.
Such factors may cause the price of our stock to fluctuate frequently and substantially. Such factors may include large purchases
or sales of our common stock, shorting of our stock, positive or negative events, commentaries or publicity relating to our company,
management or products, or other companies, management or products, including other immune therapies for cancer or immune therapies
or cancer therapies generally, positive or negative events relating to healthcare and the overall pharmaceutical and biotech sector,
the publication of research by securities analysts and changes in recommendations of securities analysts, legislative or regulatory
changes, and/or general economic conditions. In the past, shareholder litigation, including class action litigation, has been brought
against other companies that experienced volatility in the market price of their shares and/or unexpected or adverse developments
in their business. Whether or not meritorious, litigation brought against a company following such developments can result in substantial
costs, divert management’s attention and resources, and harm the company’s financial condition and results of operations.
Our Common Stock is considered a
“penny stock” and may be difficult to sell.
The SEC has adopted
regulations which generally define “penny stock” to be an equity security that has a market price of less than $5.00
per share or an exercise price of less than $5.00 per share, subject to specific exemptions. Historically, the price of our Common
Stock has fluctuated greatly. As of the date of this filing, the market price of our common stock is less than $5.00 per share,
and is therefore a “penny stock” according to SEC rules. The “penny stock” rules impose additional sales
practice requirements on broker-dealers who sell securities to persons other than established customers and accredited investors
(generally those with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse).
For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of securities
and have received the purchaser’s written consent to the transaction before the purchase. Additionally, for any transaction
involving a penny stock, unless exempt, the broker-dealer must deliver, before the transaction, a disclosure schedule prescribed
by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer
and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing
recent price information on the limited market in penny stocks. These additional burdens imposed on broker-dealers may restrict
the ability or decrease the willingness of broker-dealers to sell our common stock, and may result in decreased liquidity for our
common stock and increased transaction costs for sales and purchases of our common stock as compared to other securities.
Toucan Capital and its affiliates,
including Linda Powers and Cognate BioServices, are the principal holders of our shares of common stock, and this concentration
of ownership may have a negative effect on the market price of our common stock.
As of December 31,
2016, Toucan Capital and its affiliates (including Cognate BioServices, Toucan Partners and Linda Powers, who also serves as our
Chief Executive Officer and Chairperson of the Board of Directors), collectively, beneficially owned a significant percentage of
our outstanding common stock on that date. This concentration of ownership could involve conflicts of interest and may adversely
affect the trading price of our common stock because investors may perceive disadvantages in owning stock of companies with controlling
stockholders, including controlling stockholders who could have conflicts of interest. Toucan Capital and its affiliates, including
Linda Powers and Cognate BioServices, have the ability to exert substantial influence over all matters requiring approval by our
stockholders, including the election and removal of directors and any proposed merger, consolidation or sale of all or substantially
all of our assets, as well as over our business plans, strategies or operations. This influence could have the effect of delaying,
deferring or preventing a change in control, or impeding a merger or consolidation, takeover or other business combination or action
that could be favorable to investors.
The requirements of the Sarbanes-Oxley
Act of 2002 and other U.S. securities laws impose substantial costs and may drain our resources and distract our management.
We are subject to certain
of the requirements of the Sarbanes-Oxley Act of 2002 in the U.S., as well as the reporting requirements under the Exchange Act.
The Exchange Act requires, among other things, filing of annual reports on Form 10-K, quarterly reports on Form 10-Q and periodic
reports on Form 8-K, following the occurrence of certain material events, with respect to our business and financial condition.
The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal
controls over financial reporting. We have identified a number of material weaknesses in our internal controls, as described above
under “Our management and our independent auditors have identified certain internal control deficiencies, which our management
and our independent auditors believe constitute material weaknesses although they did not result in any adjustments.” Meeting
the requirements of the Exchange Act and the Sarbanes-Oxley Act may strain our resources and may divert management’s attention
from other business concerns, both of which may have a material adverse effect on our business.
We do not intend to pay any cash
dividends in the foreseeable future and, therefore, any return on your investment in our common stock must come from increases
in the market price of our common stock.
We have not paid any
cash dividends on our common stock to date in our history, and we do not intend to pay cash dividends on our common stock in the
foreseeable future. We intend to retain future earnings, if any, for reinvestment in the development and expansion of our business.
Also, any credit agreements which we may enter into with institutional lenders may restrict our ability to pay dividends. Therefore,
any return on your investment in our capital stock must come from increases in the fair market value and trading price of our common
stock. Such increases in the trading price of our stock may not occur.
Our Certificate of Incorporation
and Bylaws and Delaware law, have provisions that could discourage, delay or prevent a change in control.
Our Certificate of
Incorporation (the “Certificate of Incorporation”) and Bylaws (the “Bylaws”) and Delaware law contain provisions
which could make it more difficult for a third-party to acquire us, even if closing such a transaction would be beneficial to our
stockholders. We are authorized to issue up to 40,000,000 shares of preferred stock. This preferred stock may be issued in one
or more series, the terms of which may be determined at the time of issuance by our Board of Directors without further action by
stockholders. The terms of any series of preferred stock may include voting rights (including the right to vote as a series on
particular matters), preferences as to dividend, liquidation, conversion and redemption rights and sinking fund provisions. The
issuance of any preferred stock could materially adversely affect the rights of the holders of our common stock, and therefore,
reduce the value of our common stock. In particular, specific rights granted to future holders of preferred stock could be used
to restrict our ability to merge with, or sell our assets to, a third-party and thereby preserve control by the present management.
Provisions of our Certificate of Incorporation
and Bylaws and Delaware law also could have the effect of discouraging potential acquisition proposals or tender offers or delaying
or preventing a change in control, including changes a stockholder might consider favorable. Such provisions may also prevent or
frustrate attempts by our stockholders to replace or remove our management. In particular, the Certificate of Incorporation and
Bylaws and Delaware law, as applicable, among other things:
|
·
|
provide the Board of Directors with the ability to alter the Bylaws without stockholder approval;
|
|
·
|
establish staggered terms for board members;
|
|
·
|
place limitations on the removal of directors; and
|
|
·
|
provide that vacancies on the Board of Directors may be filled by a majority of directors in office,
although less than a quorum.
|
We are also subject
to Section 203 of the Delaware General Corporation Law which, subject to certain exceptions, prohibits “business combinations”
between a publicly held Delaware corporation and an “interested stockholder,” which is generally defined as a stockholder
who becomes a beneficial owner of 15% or more of a Delaware corporation’s voting stock for a three-year period following
the date that such stockholder became an interested stockholder.
A substantial number of shares of
common stock may be sold in the market, which may depress the market price for our common stock.
Sales of a substantial
number of shares of our common stock in the public market could cause the market price of our common stock to decline. A substantial
majority of the outstanding shares of our common stock are freely tradable without restriction or further registration under the
Securities Act. In addition, as of December 31, 2016, 58,278,000 shares of our common stock are issuable upon exercise of outstanding
warrants and 1,551,000 shares of our common stock are issuable upon exercise of outstanding options.
We may have claims and lawsuits against
us that may result in adverse outcomes.
From time to time,
we may be subject to a variety of claims and lawsuits. We are engaged in responding to a shareholder demand for access to certain
corporate books and records, and we are also engaged in shareholder litigation, including a class action securities lawsuit that
was filed in the U.S. District Court for the District of Maryland, a shareholder derivative action pending in the U.S. District
Court for the District of Maryland, and a lawsuit asserting both derivative and direct class action claims pending in the Delaware
Court of Chancery. We believe that the claims are without merit. However, litigation and claims are subject to inherent uncertainties,
and adverse rulings or outcomes could occur, and/or could lead to further claims or litigation. Adverse outcomes or further litigation
could result in significant monetary damages or injunctive relief that could adversely affect our business. A material adverse
impact on our financial statements also could occur for the period in which an unfavorable final outcome becomes probable and its
effect becomes reasonably estimable. In addition, litigation and claims may divert material amounts of management time and attention
from our business, and/or involve significant legal costs and expenses.
Use
of Proceeds
We estimate that the
net proceeds from this offering will be approximately $1,750,000 gross, and approximately $1,587,500 after deducting estimated
offering expenses payable by us.
We intend to use the
net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures, research
and development expenditures, regulatory affairs expenditures, clinical trial expenditures, acquisitions of new technologies and
investments.
We have not yet determined
the amount of net proceeds to be used specifically for any of the foregoing purposes. Accordingly, our management will have significant
discretion and flexibility in applying the net proceeds from this offering. Pending any use, as described above, we intend to invest
the net proceeds in high-quality, short-term, interest-bearing securities.
Dividend
Policy
We have never declared
or paid cash dividends on our capital stock. We currently intend to retain our future earnings, if any, for use in our business
and therefore do not anticipate paying cash dividends in the foreseeable future. Payment of future dividends, if any, will be at
the discretion of our board of directors after taking into account various factors, including our financial condition, operating
results, current and anticipated cash needs and plans for expansion.
Dilution
In purchasing shares
in this offering, the buyer’s interest will be diluted to the extent of the difference between the offering price per share
and the net tangible book value per share of our common stock after this offering. Our net tangible book value as of June 30, 2017
was $(35.2) million, or $(0.15) per share of common stock. “Net tangible book value” is total assets minus the sum
of liabilities and intangible assets. “Net tangible book value per share” is net tangible book value divided by the
total number of shares of common stock outstanding.
After giving effect
to the sale by us of 8,750,000 shares of our common stock in this offering and no exercise of the Warrants for common stock, at
the offering price of $0.20 per share, and after deducting estimated offering expenses payable by us, our net tangible book value
as of June 30, 2017 would have been approximately $(33.6) million, or $(0.14) per share of common stock. This amount represents
$0.01 increase in net tangible book value per share to existing stockholders and an immediate dilution of $0.34 per share to purchasers
in this offering.
The following table illustrates the dilution:
Offering price per share
|
|
|
|
|
|
$
|
0.20
|
|
Net tangible book value per share as of June 30, 2017
|
|
$
|
(0.15
|
)
|
|
|
|
|
Increase in net tangible book value per share after this offering
|
|
$
|
0.01
|
|
|
|
|
|
Pro forma net tangible book value per share after this offering
|
|
|
|
|
|
$
|
(0.14
|
)
|
Dilution per share to the investor in this offering
|
|
|
|
|
|
$
|
0.34
|
|
The above table is based on
296,976,543
shares outstanding, including redeemable shares, as of June 30, 2017 and excludes, as of that date:
|
·
|
11,343,117 shares of our common stock subject to outstanding options having a weighted average
exercise price of $0.25 per share; and
|
|
·
|
121,689,276 shares of our common stock that have been reserved for issuance upon exercise of outstanding
warrants at a weighted average exercise price of $0.98 per share.
|
To the extent that
any outstanding options or warrants are exercised, or we otherwise issue additional shares of common stock in the future, at a
price less than the public offering price, there will be further dilution to the investor.
Description
of Securities
In this offering, we
are offering up to 8,750,000 shares of Common Stock and Class A Warrants to purchase up to 4,375,000 shares of Common Stock.
Common Stock
The following is a
description of the material terms and provisions of our common stock. It may not contain all the information that is important
to you. You can access complete information by referring to our Certificate of Incorporation, as amended (the “Certificate
of Incorporation”), and our Bylaws, as amended (the “Bylaws”), copies of which are filed as exhibits to the registration
statement of which this prospectus forms a part.
General
Under our Certificate
of Incorporation, we have authority to issue 450,000,000 shares of common stock, par value $0.001 per share, and 40,000,000 shares
of preferred stock, par value $0.001 per share. As of September 19, 2017, there were 298,503,437 shares of common stock issued
and outstanding and no shares of preferred stock outstanding. All shares of common stock will, when issued pursuant to this prospectus,
be duly authorized, fully paid and nonassessable.
Dividends
Subject to the prior
rights of any series of preferred stock which may from time to time be outstanding, the holders of our common stock are entitled
to receive such dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
In the event we are liquidated, dissolved or our affairs are wound up, after we pay or make adequate provision for all of our known
debts and liabilities, each holder of common stock will receive distributions pro rata out of assets that we can legally use to
pay distributions, subject to any rights that are granted to the holders of any class or series of preferred stock. As of the date
of this prospectus, we have not declared or paid any cash dividends on our shares of common stock.
Voting Rights
Holders of common stock
are entitled to one vote per share and do not have cumulative voting rights. An election of directors by our stockholders is determined
by a plurality of the votes cast by the stockholders entitled to vote on the election.
Other Rights
Subject to the preferential
rights of any other class or series of stock, all shares of common stock have equal dividend, distribution, liquidation and other
rights, and have no preference, appraisal or exchange rights. Furthermore, holders of common stock have no conversion, sinking
fund or redemption rights, or preemptive rights to subscribe for any of our securities.
Transfer Agent
The transfer agent
and registrar for our common stock is Computershare Trust Company, N.A. Its address is P.O. Box 30170, College Station, Texas 77842
and its phone number is (866) 282-9695.
Listing
Our common stock is traded on the OTCQB
tier of the OTC Markets under the symbol “NWBO”.
Class A Warrants
We are offering Class
A Common Stock Purchase Warrants to purchase up to 4,375,000 shares of Common Stock through this prospectus supplement. Each Class
A Warrant will entitle the holder to purchase one share of Common Stock at a price of $0.22 per share, subject to adjustment as
described below under “Adjustment of the Number of Shares and Exercise Price.”
How to Exercise Warrants
The Warrants may
be exercised by delivery of an Exercise Notice, in the form attached to the warrant certificates, to us and payment of the
exercise price. The Exercise Notice form attached to the warrant certificate must be signed by the warrant holder. Except as
described in the paragraph below, payment of the exercise price of the Warrants must be made in cash by wire transfer.
If a registration statement
under the Securities Act permitting the sale of the shares issuable upon the exercise of the Warrants is not in effect, a warrant
holder may deliver to us an Exercise Notice cancelling all or a portion of the Warrants being exercised in lieu of paying the exercise
price in cash, and receive upon such exercise the “net number” of common shares determined according to a formula based
on the total number of shares with respect to which the Warrants are being exercised, the closing sale price for our common shares
on the trading day immediately preceding the date that the Warrant Exercise Notice is received, and the exercise price of the Warrants.
No fractional common
shares will be issued upon the exercise of the Warrants. Instead, the number of common shares to be issued shall at the election
of the Company be rounded up to the next whole share or we will refund to the warrant holder the portion of the exercise price
allocable to the fraction of a share not issued.
Limitations on Exercise
The number of common
shares that may be acquired by a warrant holder upon any exercise of a warrant will be limited to the extent necessary to ensure
that, following such exercise (or other issuance), the total number of our common shares then beneficially owned by the warrant
holder and its affiliates and any other persons whose beneficial ownership of our common shares would be aggregated with the warrant
holder’s for purposes of Section 13(d) of the Exchange Act does not exceed 4.99% (or, upon election of investor, 9.99%) of
the total number of issued and outstanding common shares (including for such purpose the common shares issuable upon such exercise),
provided that the holder may increase or decrease the beneficial ownership limitation up to 9.99%, provided, further, that any
increase in the beneficial ownership limitation shall not be effective until 61 days following notice of such change to the Company.
Expiration Date of Warrants
The Class
A Warrants will expire at 5:00 p.m. New York time on the date that is five (5) years after the date the warrants are issued
and may not be exercised after that date.
Transferability
The Warrants may be
transferred by the warrant holder upon surrender of the warrant certificate to us together with the appropriate instruments of
transfer. The Warrants may be transferred independent of the common shares with which they are being issued.
Cash Penalty and Buy-In Rights
We are required
to deliver the common shares issuable upon the exercise of the Warrants not later than the earlier of the
standard settlement period or the third trading day after we receive a Warrant holder’s Exercise Notice, provided that
the warrant holder pays the exercise price by the third trading day or the standard settlement period after we receive the
Exercise Notice. If we do not receive the exercise price by the third trading day after we received the Exercise Notice, then
we will not be obligated to deliver the common shares until the trading day after we receive the exercise price. If we fail
to deliver the shares by the date due, then, in addition to all other remedies available to the warrant holder, we will
be required to pay the warrant holder an amount of cash equal to:
|
·
|
the buy-in price, meaning (i) the holder’s total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased less (ii) the amount obtained by multiplying the number of such shares and
the price at which the sell order was executed; and
|
|
·
|
at the holder’s discretion, either reinstate the portion of the warrant and equivalent number
of shares for which exercise was not honored or deliver to the holder the number of shares of Common Stock that would have been
issued had we timely delivered the warrant shares.
|
In addition, if
we fail for any reason to deliver to the holder the warrant shares by the warrant delivery date, we shall pay to the holder,
for each $1,000 of warrant shares subject to such exercise (based on the volume weighted average price on the date
of notice of exercise), $10 per trading day (increasing to $20 per trading day on the fifth trading day after such damages
begin to accrue) for each trading day after such warrant delivery date until such shares are delivered or the holder
rescinds such exercise.
If the holder desires
to exercise its warrant and sell the shares issuable upon exercise of its warrant and there is no effective registration statement
registering, or the prospectus contained therein is not available for, the issuance of the shares of Common Stock underlying the
Warrants to the holder and such shares are not then registered for resale by the holder into the market at market prices from time
to time on an effective registration statement for use on a continuous basis (or the prospectus contained therein is not available
for use), in lieu of exercising its warrant by payment of a wire transfer or cashier’s check, the holder may elect to receive
shares equal to the value of such holder’s warrant by delivering a properly endorsed exercise form. The number of shares
to be issued would be determined by a formula based on the total number of shares with respect to which the warrant is being exercised,
the volume weighted average price on the day immediately prior to the date of exercise and the applicable exercise price of the Warrants.
Adjustment of the Number of Shares and Exercise Price
The common shares issuable
upon the exercise of the Warrants, and the Warrant exercise price per share will be proportionally adjusted in the event of a stock
split, stock dividend, combination, reclassification of our common shares or similar recapitalization.
Whenever the number
of shares purchasable upon the exercise of the Warrants is adjusted, the price payable upon exercise of the Warrants will be adjusted
by multiplying the exercise price immediately prior to the adjustment by a fraction, the numerator of which will be the number
of shares purchasable upon the exercise of each warrant immediately prior to the adjustment, and the denominator of which will
be the number of shares purchasable immediately thereafter.
Rights Upon Merger, Consolidation, and Certain Other Transactions
The Warrants provide
that if we enter into a “fundamental transaction” each warrant holder shall receive, upon and to the extent that they
exercise their Warrants, shares of capital stock, securities, cash, assets or any other property (including warrants or other purchase
or subscription rights and any common shares) which they would have been entitled to receive upon the occurrence or consummation
of the fundamental transaction, less the applicable exercise price, if they had exercised their Warrants immediately prior to the
fundamental transaction. A fundamental transaction includes (a) any consolidation or merger of the Company with or into another
corporation, (b) any sale, transfer or lease of all or substantially all of our property; or (c) any recapitalization or reclassification
of our common shares or any exchange of our common shares for any other class of our capital stock or other securities that we
may issue.
No Rights as Shareholders
The Warrants do not
confer upon the warrant holders the right to vote or to receive dividends or to consent or to receive notice as shareholders in
respect of any meeting of shareholders for the election of directors or any other matter, or any other rights whatsoever as our
shareholders, except as set forth in warrants.
Notices to Warrant Holders
We will give warrant
holders at least 20 days prior notice of any record date or the date of closing the transfer books for any of the following actions
that we plan to take: (a) any dividend or distribution on our common shares; (b) any grants, issuance or sales of any options,
convertible securities or rights to purchase stock, warrants, securities, or other property to the holders of common shares; and
(c) determining shareholders entitled to vote with respect to a fundamental transaction or a dissolution or liquidation. We will
also give warrant holders notice of any adjustment of the exercise price of the Warrants, including the calculation of the adjustment.
The forgoing description
of the Warrants is only a summary and does purport to be a complete description of all of the terms of the Warrants. The form of
the Warrants has been filed as an exhibit to a Current Report on Form 8-K filed with the SEC. The foregoing summary is qualified
in all respects by the terms of the form of the Warrants which are incorporated herein by reference.
Plan
of Distribution
Pursuant to an engagement agreement, dated
September 19, 2017, we have engaged H.C. Wainwright & Co., LLC (“H.C. Wainwright” or the “Placement Agent”)
as our exclusive placement agent for this offering. The Placement Agent is not purchasing or selling any securities, nor is the
Placement Agent required to arrange for the purchase and sale of any specific number or dollar amount of securities, other than
to use its “reasonable best efforts” to arrange for the sale of securities by us. The Placement Agent may engage one
or more sub-placement agents or selected dealers to assist with the offering.
Upon the closing of this offering, we will
pay to the Placement Agent a cash fee equal to 7% of the gross proceeds to us from the sale of the securities in this offering.
In addition, we will pay to H.C. Wainwright an expense allowance equal to $30,000.
In addition, we agreed
to grant compensation warrants to the Placement Agent (the “Placement Agent Warrant”) to purchase a number of shares
of our common stock equal to 7% of the number of shares of common stock sold in this offering. The Placement Agent Warrant will have an exercise price of 125% of the
per share price paid by the investors in this offering and will terminate on the five-year anniversary of the effective date of
the offering. Pursuant to FINRA Rule 5110(g), the Placement Agent Warrant, and any shares issued upon exercise of the Placement
Agent Warrant shall not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale,
derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for
a period of 180 days immediately following the date of effectiveness or commencement of sales of this offering, except the transfer
of any security:
|
·
|
by operation of law or by reason of reorganization of our company;
|
|
·
|
to any FINRA member firm participating in the offering and the officers or partners thereof, if
all securities so transferred remain subject to the lock-up restriction set forth above for the remainder of the time period;
|
|
·
|
if the aggregate amount of our securities held by the placement agent or related persons do
not exceed 1% of the securities being offered;
|
|
·
|
that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided
that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do
not own more than 10% of the equity in the fund; or
|
|
·
|
the exercise or conversion of any security, if all securities received remain subject to the lock-up
restriction set forth above for the remainder of the time period.
|
We have
also agreed to pay to the placement agent the cash fee and compensation warrants set forth above in connection with the
exercise of the Class A Warrants issued in this offering.
We negotiated the price
for the shares offered in this offering with the purchasers. The factors considered in determining the price included the recent
market price of our common stock, the general condition of the securities market at the time of this offering, the history of,
and the prospects, for the industry in which we compete, our past and present operations, and our prospects for future revenues.
The Placement Agent
may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended (the “Securities
Act”), and any fees or commissions received by it and any profit realized on the resale of the securities sold by it while
acting as principal might be deemed to be underwriting discounts or commissions under the Securities Act. As underwriter, the placement
agent would be required to comply with the requirements of the Securities Act and the Exchange Act, including, without limitation,
Rule 415(a)(4) under the Securities Act and Rule 10b-5 and Regulation M under the Exchange Act.
These rules and regulations
may limit the timing of purchases and sales of shares of common stock by the placement agent. Under these rules and regulations,
the placement agent (i) may not engage in any stabilization activity in connection with our securities and (ii) may not bid for
or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under
the Exchange Act, until it has completed its participation in the distribution.
We have agreed to indemnify
the placement agent against certain liabilities, including liabilities under the Securities Act of 1933, as amended, and liabilities
arising from breaches and representations and warranties contained in the placement agent agreement. We have also agreed to contribute
to payments the placement agent may be required to make in respect of such liabilities.
Legal
Matters
The validity of the securities being offered
hereby will be passed upon by Gibson, Dunn & Crutcher LLP, New York, New York. H.C. Wainwright & Co., LLC is being represented
in connection with this offering by Ellenoff, Grossman & Schole LLP, New York, New York.
Experts
The audited financial statements incorporated
by reference in this prospectus have been so incorporated by reference in reliance upon the report of Marcum LLP, independent registered
public accountants, upon the authority of said firm as experts in accounting and auditing in giving said report.
Where
You Can Find More Information
We are subject to the
reporting requirements of the Securities Exchange Act of 1934, as amended, and file annual, quarterly and current reports, proxy
statements and other information with the SEC. You may read and copy these reports, proxy statements and other information at the
SEC’s public reference facilities at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You can request copies of these
documents by writing to the SEC and paying a fee for the copying cost. Please call the SEC at 1-800-SEC-0330 for more information
about the operation of the public reference facilities. SEC filings are also available at the SEC’s website at http://www.sec.gov.
Our common stock is listed on the OTCQB tier of the OTC Markets, and you can read and inspect our filings at the offices of the
Financial Industry Regulatory Authority, Inc. at 1735 K Street, Washington, D.C. 20006.
This prospectus supplement
and the accompanying prospectus are only part of a registration statement on Form S-3 that we filed with the SEC under the Securities
Act of 1933, as amended, and therefore omits certain information contained in the registration statement. We have also filed exhibits
and schedules with the registration statement that are excluded from this prospectus supplement and the accompanying prospectus,
and you should refer to the applicable exhibit or schedule for a complete description of any statement referring to any contract
or other document. You may inspect a copy of the registration statement, including the exhibits and schedules, without charge,
at the public reference room or obtain a copy from the SEC upon payment of the fees prescribed by the SEC.
Incorporation
of Certain Information By Reference
The SEC allows us to
“incorporate by reference” information that we file with them. Incorporation by reference allows us to disclose important
information to you by referring you to those other documents. The information incorporated by reference is an important part of
this prospectus supplement and the accompanying prospectus, and information that we file later with the SEC will automatically
update and supersede this information. We filed a registration statement on Form S-3 under the Securities Act of 1933, as amended,
with the SEC with respect to the securities being offered pursuant to this prospectus supplement and the accompanying prospectus.
This prospectus supplement and the accompanying prospectus omit certain information contained in the registration statement, as
permitted by the SEC. You should refer to the registration statement, including the exhibits, for further information about us
and the securities being offered pursuant to this prospectus supplement and the accompanying prospectus. Statements in this prospectus
supplement and the accompanying prospectus regarding the provisions of certain documents filed with, or incorporated by reference
in, the registration statement are not necessarily complete and each statement is qualified in all respects by that reference.
Copies of all or any part of the registration statement, including the documents incorporated by reference or the exhibits, may
be obtained upon payment of the prescribed rates at the offices of the SEC listed above in “Where You Can Find More Information.”
The documents we are incorporating by reference are:
|
•
|
Our Annual Report on Form 10-K for the fiscal year
ended December 31, 2016, filed on April 17, 2017;
|
|
•
|
Our Quarterly Reports on Form 10-Q for the fiscal quarters
ended March 31, 2017, filed on May 15, 2017 and June 30, 2017, filed on August 21, 2017;
|
|
•
|
Our Current Reports on Form 8-K filed with the SEC
on January 19, 2017, February 8, 2017, March 7, 2017, March 10, 2017, March 23, 2017 (both filings), April 5, 2017, April 7, 2017,
April 25, 2017, May 26, 2017, May 31, 2017, June 13, 2017, June 19, 2017, June 27, 2017, July 21, 2017, July 26, 2017, August
7, 2017 (both filings), and August 8, 2017;
|
|
•
|
All of our filings pursuant to the Exchange Act after
the date of filing this prospectus supplement and prior to completion of the offering of securities being made hereby; and
|
|
•
|
The description of our common stock contained in our
Registration Statement on Form 8-A filed on November 14, 2012, including any amendments or reports filed for the purpose of updating
that description.
|
In addition, all documents
(other than current reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed in such forms that are related
to such items unless such Form 8-K expressly provides to the contrary) subsequently filed by us pursuant to Section 13(a), 13(c),
14 or 15(d) of the Securities Exchange Act of 1934, as amended, before the date our offering is terminated or completed are deemed
to be incorporated by reference into, and to be a part of, this prospectus supplement and the accompanying prospectus.
Any statement contained
in this prospectus supplement or the accompanying prospectus or in a document incorporated or deemed to be incorporated by reference
into this prospectus supplement or the accompanying prospectus will be deemed to be modified or superseded for purposes of this
prospectus supplement and the accompanying prospectus to the extent that a statement contained in any subsequently filed document
that is deemed to be incorporated by reference into this prospectus supplement and the accompanying prospectus modifies or supersedes
the statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a
part of this prospectus supplement and the accompanying prospectus.
We will furnish without
charge to you, on written or oral request, a copy of any or all of the documents incorporated by reference, including exhibits
to these documents. You should direct any requests for documents to Northwest Biotherapeutics, Inc., 4800 Montgomery Lane, Suite
800, Bethesda, MD 20814, (240) 497-9024.
You should rely only
on information contained in, or incorporated by reference into, this prospectus supplement and the accompanying prospectus and
any other prospectus supplement. We have not authorized anyone to provide you with information different from that contained in
this prospectus supplement and the accompanying prospectus or incorporated by reference in this prospectus supplement and the accompanying
prospectus. We are not making offers to sell the securities offered hereby in any jurisdiction in which such an offer or solicitation
is not authorized or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is
unlawful to make such offer or solicitation.
8,750,000 Shares of Common Stock
Class A Warrants to Purchase 4,375,000
Shares of Common Stock
Rodman & Renshaw
a unit of H.C. Wainwright & Co.
Prospectus Supplement dated September 20,
2017
PROSPECTUS
Northwest Biotherapeutics, Inc.
$150,000,000
of
Common Stock
Preferred Stock
Warrants
Debt Securities
Share Purchase Contracts
Share Purchase Units
Units
This prospectus relates
to common stock, preferred stock, warrants, debt securities, share purchase contracts, share purchase units, and units comprised
of the foregoing that we may sell from time to time in one or more offerings up to a total dollar amount of $150,000,000 on terms
to be determined at the time of sale. We may also offer common stock or preferred stock upon conversion of debt securities, common
stock upon conversion of preferred stock, common stock, preferred stock or debt securities upon the exercise of warrants, or common
stock upon execution of a share purchase contract. We will provide specific terms of these securities in supplements to this prospectus.
You should read this prospectus and any supplement carefully before you invest. This prospectus may not be used to offer and sell
securities unless accompanied by a prospectus supplement for those securities.
Our common stock is
listed on The Nasdaq Capital Market under the symbol “NWBO.” On October 13, 2016, the last reported sale price of our
common stock was $0.46. We recommend that you obtain current market quotations for our common stock and warrants prior to making
an investment decision.
These securities may
be sold directly by us, through dealers or agents designated from time to time, to or through underwriters or through a combination
of these methods. See “Plan of Distribution” in this prospectus. We may also describe the plan of distribution for
any particular offering of these securities in any applicable prospectus supplement. If any agents, underwriters or dealers are
involved in the sale of any securities in respect of which this prospectus is being delivered, we will disclose their names and
the nature of our arrangements with them in a prospectus supplement. The net proceeds we expect to receive from any such sale will
also be included in a prospectus supplement.
As of October 13, 2016,
the aggregate market value of our outstanding common stock held by non-affiliates, or the public float, was $35,889,608.50, which
was calculated based on 78,020,888 shares of outstanding common stock held by non-affiliates and on a price per share of $0.46,
the closing price of our common stock on October 13, 2016. Pursuant to General Instruction I.B.6 of Form S-3, in no event will
we sell securities in a public primary offering with a value exceeding more than one-third of our “public float” (the
market value of our common stock held by our non-affiliates) in any 12-month period so long as our public float remains below $75,000,000.
We have not sold any of our common stock or securities convertible into our common stock during the 12 calendar months prior to
and including the date of this prospectus pursuant to Instruction I.B.6.
Investing in our
securities involves a high degree of risk. See “Risk Factors” beginning on page 3.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This prospectus may
not be used to consummate sales of securities unless it is accompanied by a prospectus supplement.
The date of this prospectus is October 18,
2016
TABLE OF CONTENTS
Important Notice about the Information
Presented in this Prospectus
You should rely
only on the information contained or incorporated by reference in this prospectus or any applicable prospectus supplement. We have
not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent
information, you should not rely on it. For further information, see the section of this prospectus entitled “Where You Can
Find More Information.” We are not making an offer to sell these securities in any jurisdiction where the offer or sale is
not permitted.
You should not assume
that the information appearing in this prospectus or any applicable prospectus supplement is accurate as of any date other than
the date on the front cover of this prospectus or the applicable prospectus supplement, or that the information contained in any
document incorporated by reference is accurate as of any date other than the date of the document incorporated by reference, regardless
of the time of delivery of this prospectus or any prospectus supplement or any sale of a security. Our business, financial condition,
results of operations and prospects may have changed since such dates. Neither this prospectus nor any accompanying supplement
shall constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorized or
in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such
offer or solicitation
.
About
This Prospectus
This prospectus is
part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”), using a “shelf”
registration process. Under this shelf registration process, we may sell any combination of the securities described in this prospectus
in one or more offerings up to a total dollar amount of $150,000,000. This prospectus provides you with a general description of
the securities we may offer. Each time we sell securities, we will provide a prospectus supplement that will contain specific information
about the securities being offered and the terms of that offering. The prospectus supplement may also add to, update or change
information contained in this prospectus.
As permitted by the
rules and regulations of the SEC, the registration statement, of which this prospectus forms a part, includes additional information
not contained in this prospectus. You may read the registration statement and other reports we file with the SEC on the SEC’s
web site or at the SEC’s offices, each as further describe below under the heading “Where You Can Find More Information.”
Unless otherwise expressly
provided or the context otherwise requires, the terms “Northwest Biotherapeutics,” “the Company,” “our
company,” “we,” “us,” “our” and similar names refer collectively to Northwest Biotherapeutics,
Inc. and its subsidiaries.
About
Northwest BIOTHERAPEUTICS, Inc.
We are a biotechnology
company focused on developing immunotherapy products to treat cancers more effectively than current treatments, without toxicities
of the kind associated with chemotherapies, and, through a proprietary batch manufacturing process, on a cost-effective basis,
initially in both the United States and Europe (the two largest medical markets in the world).
We have developed a
platform technology, DCVax®, which uses activated dendritic cells to mobilize a patient's own immune system to attack their
cancer. The DCVax technology is expected to be applicable to all types of solid tumor cancers, and is embodied in several distinct
product lines. One of the product lines (DCVax®-L) is designed to cover all solid tumor cancers in which the tumors can be
surgically removed. Another product line (DCVax®-Direct) is designed for all solid tumor cancers which are considered inoperable
and cannot be surgically removed. We believe the broad applicability of DCVax to many cancers provides multiple opportunities for
commercialization and partnering.
Our DCVax platform
technology involves dendritic cells, the master cells of the immune system, and is designed to reinvigorate and educate the immune
system to attack cancers. The dendritic cells are able to mobilize the overall immune system, which includes T cells, B cells and
antibodies, natural killer cells and many others. Such mobilization of the overall immune system provides a broader attack on the
cancer than mobilizing just a particular component, such as T cells alone, or a particular antibody alone. Likewise, our DCVax
technology is designed to attack the full set of biomarkers, or antigens, on a patient’s cancer, rather than just a particular
selected target or several targets. Clinical experience indicates that when just one or a few biomarkers on a cancer are targeted
by a drug or other treatment, sooner or later the cancer usually develops a way around that drug, and the drug stops working. We
believe that mobilizing all agents of the immune system, and targeting all biomarkers on the patient’s cancer, contributes
to the effectiveness of DCVax.
The DCVax Technology
Our platform technology,
DCVax®, is a personalized immune therapy which consists of a therapeutic vaccine that uses a patient’s own dendritic
cells, or DCs, the master cells of the immune system, as the therapeutic agent. The patient’s DCs are obtained through a
blood draw, or leukapheresis. The DCs are then activated and loaded with biomarkers (“antigens”) from the patient’s
own tumor. The loading of biomarkers into the DCs “educates” the DCs about
what
to attack. The activated, educated
DCs are then isolated with very high purity and constitute the DCVax personalized vaccine.
We believe that injection
of DCVax-L into the patient, through a simple intra-dermal injection in the upper arm, can initiate a potent immune response against
cancer cells, mobilizing the overall immune system and doing so in the way nature intended, with the numerous immune agents acting
in their normal roles and in combination with each other.
Importantly, each activated,
educated dendritic cell has a large multiplier effect, mobilizing hundreds of T cells and other immune cells. As a result, small
doses of such dendritic cells can mobilize large and sustained immune responses. Also very importantly, dendritic cells activate
diverse populations of T cells (i.e., T cells targeted at a variety of different biomarker targets on the patient’s cancer).
In contrast, T cell based therapies employ T cells aimed at just one biomarker target on the cancer, similar to targeted drugs.
DCVax Product Lines
We have developed several
different product lines based on the DCVax technology, to address multiple different cancers and different patient situations.
There are two main components to each DCVax product: the immune cells (dendritic cells) and the cancer biomarker targets (antigens).
All of our DCVax product
lines are made from the patient’s own dendritic cells. The dendritic cells are freshly isolated, and newly matured and activated.
We believe that the existing dendritic cells in a cancer patient have already been compromised by the cancer, and we believe that
is one of the reasons other vaccines aimed at the existing dendritic cells in patients have largely failed. However, the patient’s
body continues to produce new precursors of dendritic cells, and these precursors (monocytes) circulate in the patient’s
blood stream. For all DCVax products, these precursors are obtained through a blood draw, and then (through our proprietary manufacturing
processes), the precursors are matured into a fresh batch of new dendritic cells.
DCVax-L
- is
designed for
operable
solid tumors. It is made with cancer antigens from tumor lysate (a protein extract from processed
tumor cells) from the patient’s own tumor tissue. As such, DCVax-L incorporates the full set of tumor antigens, making it
difficult for tumors to find detours around it (“escape variants”), as described above. This is the DCVax product that
has been used in our brain cancer and ovarian cancer clinical trials, and is currently being studied in our 348-patient Phase III
brain cancer trial. DCVax-L is expected to be applicable for any types of solid tumor cancers in situations in which the patient
has their tumor surgically removed as part of the standard of care.
DCVax-Direct
- is designed for
inoperable
solid tumors – situations in which it is not feasible or not desirable
for patients to have their tumors surgically removed, either due to multiple metastases or for other reasons. Like DCVax-L, DCVax-Direct
also incorporates the
full set
of tumor antigens - but it does so
in situ
in the patient’s body rather
than at the manufacturing facility. With DCVax Direct, the fresh, new dendritic cells are partially matured in a special proprietary
way so as to be ready to pick up antigens directly from tumor tissue in the patient’s body, and also communicate the information
about those antigens to other agents of the immune system, such as T cells. The partially matured dendritic cells are then injected
directly into the patient’s tumor(s). There, the dendritic cells pick up the antigens
in situ
rather than picking
up the antigens from lysate in a lab dish at the manufacturing facility, as is done with DCVax-L. DCVax-Direct is anticipated to
be applicable to any type of inoperable solid tumors.
Phase III Clinical Trial of DCVax®-L
Our DCVax
®
-L
product is currently in a 348-patient Phase III trial for newly diagnosed Glioblastoma multiforme brain cancer, which is on a partial
clinical hold in regard to recruitment of new patients. The trial is a double-blind, randomized, placebo controlled trial with
two treatment arms (standard of care plus DCVax-L vs. standard of care plus a placebo). The trial also includes a crossover option
for any patients to receive DCVax-L treatment after progression (tumor recurrence). The primary endpoint is progression free survival,
or PFS, and the secondary endpoints include overall survival, or OS, and a number of other measures.
The trial is being
conducted in the U.S., the U.K., Germany and Canada. Over 300 of the total 348 planned patients have been recruited into the Phase
III trial and these patients are continuing to be treated in accordance with the trial protocol. New screening of patient candidates
for additional recruitment has been suspended pursuant to the partial hold. The Company is in ongoing dialog with regulators about
the partial hold and the Trial.
Phase I/II Trial of DCVax®-Direct
Our DCVax®-Direct
product is in a Phase I/II trial program for inoperable solid tumor cancers. The Phase I portion has been completed, and involved
40 patients with 13 different types of cancers. The patients had multiple metastases, had failed other treatments and had poor
prognoses. Following treatment with DCVax-Direct, twenty percent of these patients are still alive at survival timesexceeding two
years. The longest survivor has reached nearly three years.
For the Phase II portion
of this trial, we plan to conduct several studies in parallel, applying DCVax-Direct in different cancers. We also plan to use
an enhanced treatment regimen with more treatments, closer spacing of the treatments, and injections of DCVax-Direct into more
tumors in the patient. (In Phase I, only one of the patient’s tumors was injected with the treatment).
Target Markets for DCVax Products
Since our DCVax-L product
is potentially applicable to all types of
operable
solid tumors, and our DCVax-Direct product is potentially applicable
to all types of
inoperable
solid tumors, we believe the potential markets for DCVax products are quite large. According
to the American Cancer Society, 1 in 2 men, and 1 in 3 women in the U.S. will develop some form of cancer in their lifetime. There
are nearly 1.5 million new cases of cancer per year in the U.S., and nearly 600,000 deaths from cancer. The statistics are similar
in Europe and in much of the rest of the world.
Corporate Information
We were formed in 1996
and incorporated in Delaware in July 1998. Our principal executive offices are located in Bethesda, Maryland, and our telephone
number is (240) 497-9024. Our website address is
www.nwbio.com
. The information on our website is not part of this report.
We have included our website address as a factual reference and do not intend it to be an active link to our website.
Risk
Factors
Investing in our securities
involves significant risks. Please see the risk factors under the heading “Risk Factors” in our most recent Annual
Report on Form 10-K, as revised or supplemented by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with
the SEC since the filing of our most recent Annual Report on Form 10-K, each of which are on file with the SEC and are incorporated
by reference in this prospectus. Before making an investment decision, you should carefully consider these risks as well as other
information we include or incorporate by reference in this prospectus and any prospectus supplement. The risks and uncertainties
we have described are not the only ones facing our company. Additional risks and uncertainties not presently known to us or that
we currently deem immaterial may also affect our business operations, results of operation, financial condition or prospects.
Special
Note Regarding Forward-Looking Information
This prospectus includes
and incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities
Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements,
other than statements of historical facts, included or incorporated in this prospectus regarding our strategy, future operations,
financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements.
The words “anticipates,” “believes,” “estimates,” “expects,” “intends,”
“may,” “plans,” “projects,” “will,” “would” and similar expressions
are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
We cannot guarantee that we actually will achieve the plans, intentions or expectations disclosed in our forward-looking statements
and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause
our actual results to differ materially from those indicated by these forward-looking statements. These important factors include
the factors that we identify in the documents we incorporate by reference in this prospectus, as well as other information we include
or incorporate by reference in this prospectus and any prospectus supplement. See “Risk Factors.” You should read these
factors and other cautionary statements made in this prospectus and any accompanying prospectus supplement, and in the documents
we incorporate by reference as being applicable to all related forward-looking statements wherever they appear in the prospectus
and any accompanying prospectus supplement, and in the documents incorporated by reference. We do not assume any obligation to
update any forward-looking statements made by us.
Numerous factors could
cause our actual results to differ materially from those described in forward-looking statements, including, among other things:
|
·
|
risks related to our abilities to carry out intended manufacturing expansions;
|
|
·
|
our ability to raise additional capital;
|
|
·
|
risks related to our ability to enroll patients in its clinical trials and complete the trials on a timely basis;
|
|
·
|
risks related to the progress, timing and results of clinical trials and research and development efforts involving our product candidates generally;
|
|
·
|
uncertainties about the clinical trials process;
|
|
·
|
uncertainties about the timely performance of third parties;
|
|
·
|
risks related to whether our products will demonstrate safety and efficacy;
|
|
·
|
risks related to our commercialization efforts and commercial opportunity for our DCVax product candidates;
|
|
·
|
risks related to the submission of applications for and receipt of regulatory clearances and approvals;
|
|
·
|
risks related to our plans to conduct future clinical trials or research and development efforts;
|
|
·
|
risks related to our ability to carry out our Hospital Exemption program (in Germany);
|
|
·
|
risks related to possible reimbursement and pricing;
|
|
·
|
uncertainties about estimates of the potential market opportunity for our product candidates;
|
|
·
|
uncertainties about our estimated expenditures and projected cash needs;
|
|
·
|
uncertainties about our expectations about partnering, licensing and marketing; and
|
|
·
|
the use of proceeds from this offering.
|
Ratio
Of Earnings To Fixed Charges
Our ratio of earnings
to fixed charges for each of the five most recently completed fiscal years and any required interim periods will each be specified
in a prospectus supplement or in a document that we file with the SEC and incorporate by reference pertaining to the issuance,
if any, by us of debt securities or preference securities in the future.
Use
Of Proceeds
Unless otherwise provided
in the applicable prospectus supplement, we intend to use the net proceeds from the sale of these securities for general corporate
purposes, which may include working capital, capital expenditures, research and development expenditures, regulatory affairs expenditures,
clinical trial expenditures, acquisitions of new technologies and investments. We have not yet determined the amount of net proceeds
to be used specifically for any of the foregoing purposes. Accordingly, our management will have significant discretion and flexibility
in applying the net proceeds from the sale of these securities. Our plans to use the estimated net proceeds from the sale of these
securities may change, and if they do, we will update this information in a prospectus supplement.
The
Securities We May Offer
The descriptions of
the securities contained in this prospectus, together with the applicable prospectus supplements, summarize the material terms
and provisions of the various types of securities that we may offer. We will describe in the applicable prospectus supplement relating
to any securities the particular terms of the securities offered by that prospectus supplement. If we so indicate in the applicable
prospectus supplement, the terms of the securities may differ from the terms we have summarized below. We will also include in
the prospectus supplement information, where applicable, about material U.S. federal income tax considerations relating to the
securities, and the securities exchange, if any, on which the securities may be listed.
We may sell from time to time, in
one or more offerings:
|
·
|
common stock;
|
|
|
|
|
·
|
preferred stock;
|
|
|
|
|
·
|
debt securities;
|
|
|
|
|
·
|
warrants to purchase common stock, preferred stock, debt securities, or units; or
|
|
|
|
|
·
|
share purchase contracts;
|
|
|
|
|
·
|
share purchase units, each representing one or more share purchase contracts and, as security for the holder’s obligation to purchase shares under the share purchase contracts any one or more of (1) senior or subordinated debt securities, (2) preferred shares, or (3) debtor equity obligations of third parties, including U.S. Treasury securities; and/or
|
|
|
|
|
·
|
units comprised of common stock, preferred stock, warrants, and debt securities in any combination.
|
In this prospectus,
we refer to the common stock, preferred stock, depositary shares, debt securities, warrants, stock purchase contracts, stock purchase
units, and units collectively as “securities.” The total dollar amount of all securities that we may issue pursuant
to this prospectus will not exceed $150,000,000.
Description
Of Common Stock
The following is a
description of the material terms and provisions of our common stock. It may not contain all the information that is important
to you. You can access complete information by referring to our Certificate of Incorporation, as amended (the “Certificate
of Incorporation”), and our Bylaws, as amended (the “Bylaws”), copies of which are filed as exhibits to the registration
statement of which this prospectus forms a part or incorporated by reference to our other filings with the Commission.
General
Under our Certificate
of Incorporation, we have authority to issue 450,000,000 shares of common stock, par value $0.001 per share, and 40,000,000 shares
of preferred stock, par value $0.001 per share. As of September 23, 2016, there were 115,982,257 shares of common stock issued
and outstanding and no shares of preferred stock outstanding. All shares of common stock will, when issued pursuant to this prospectus,
be duly authorized, fully paid and nonassessable.
Dividends
Subject to the prior
rights of any series of preferred stock which may from time to time be outstanding, the holders of our common stock are entitled
to receive such dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
In the event we are liquidated, dissolved or our affairs are wound up, after we pay or make adequate provision for all of our known
debts and liabilities, each holder of common stock will receive distributions pro rata out of assets that we can legally use to
pay distributions, subject to any rights that are granted to the holders of any class or series of preferred stock. As of the date
of this prospectus, we have not declared or paid any cash dividends on our shares of common stock.
Voting Rights
Holders of common stock
are entitled to one vote per share and do not have cumulative voting rights. An election of directors by our stockholders is determined
by a plurality of the votes cast by the stockholders entitled to vote on the election.
Other Rights
Subject to the preferential
rights of any other class or series of stock, all shares of common stock have equal dividend, distribution, liquidation and other
rights, and have no preference, appraisal or exchange rights. Furthermore, holders of common stock have no conversion, sinking
fund or redemption rights, or preemptive rights to subscribe for any of our securities.
Transfer Agent
The transfer agent
and registrar for our common stock is Computershare Trust Company, N.A. Its address is P.O. Box 30170, College Station, Texas 77842
and its phone number is (866) 282-9695.
Listing
Our common stock is
listed on The Nasdaq Capital Market under the symbol “NWBO.”
Description
Of Preferred Stock
Our Certificate of
Incorporation authorizes us to issue up to 40,000,000 shares of preferred stock, of which no shares are outstanding.
General
Our board of directors
may, without stockholder approval, issue up to 40,000,000 shares of preferred stock in one or more series and, subject to the Delaware
General Corporation Law (“DGCL”), with respect to each series may:
|
·
|
fix the designation of such series;
|
|
·
|
fix the number of shares to constitute such series;
|
|
·
|
fix whether such series is to have voting rights (full, special or limited) or is to be without voting rights;
|
|
·
|
fix if such series is to have voting rights, whether or not such series is to be entitled to vote as a separate class either alone or together with the holders of the common stock or one or more other series of preferred stock;
|
|
·
|
fix the preferences and relative, participating, optional, conversion or other special rights (if any) of such series and the qualifications, limitations or restrictions (if any) with respect to such series;
|
|
·
|
fix the redemption rights and price(s), if any, of such series, and whether or not the shares of such series shall be subject to operation of retirement or sinking funds to be applied to the or redemption of such shares for retirement and, if such retirement or sinking funds or funds are to be established, the periodic amount thereof and the terms and provisions relative to the operation thereof;
|
|
·
|
fix the dividend rights and preferences (if any) of such series, including, without limitation, (i) the rates of dividends payable thereon, (ii) the conditions upon which and the time when such dividends are payable, (iii) whether or not such dividends shall be cumulative or noncumulative and, if cumulative, the date or dates from witch such dividends shall accumulate and (iv) whether or not the payment of such dividends shall be preferred to the payment of dividends payable on the common stock or any other series of preferred stock;
|
|
·
|
fix the preferences (if any), and the amounts thereof, which the holders of such series shall be entitled to receive upon the voluntary or involuntary liquidation, dissolution or winding-up of, or upon any distribution of the assets of, the Company;
|
|
·
|
fix whether or not the shares of such series, at the option of the Company or the holders thereof or upon the happening of any specified event, shall be convertible into or exchangeable for (i) shares of common stock, (ii) shares of any other series of preferred stock or (iii) any other stock or securities of the Company;
|
|
·
|
fix if such series is to be convertible or exchangeable, the price or prices or ratio or ratios or rate or rates at which such conversion or exchange may be made and the terms and conditions (if any) upon which such price or prices or ratio or ratios or rate or rates may be adjusted;
|
|
·
|
fix such other rights, powers and preferences with respect to such series as may to the board of directors seem advisable; and
|
|
·
|
increase (but not above the total number of authorized shares of the class) or decrease (but not below the total number of such series then outstanding) the number of shares of any series of preferred stock subsequent to the issuance of shares of such series.
|
Description
Of Warrants
The following description,
together with the additional information we may include in any applicable prospectus supplements, summarizes the material terms
and provisions of the warrants that we may offer under this prospectus and the related warrant agreements and warrant certificates.
While the terms summarized below will apply generally to any warrants that we may offer, we will describe the particular terms
of any series of warrants in more detail in the applicable prospectus supplement. If we indicate in the prospectus supplement,
the terms of any warrants offered under that prospectus supplement may differ from the terms described below. If there are differences
between that prospectus supplement and this prospectus, the prospectus supplement will control. Thus, the statements we make in
this section may not apply to a particular series of warrants. Specific warrant agreements will contain additional important terms
and provisions and will be incorporated by reference as an exhibit to the registration statement which includes this prospectus.
General
We may issue warrants
for the purchase of common stock and/or preferred stock and/or debt securities in one or more series. We may issue warrants independently
or together with common stock and/or preferred stock and/or debt securities, and the warrants may be attached to or separate from
these securities.
We will evidence each
series of warrants by warrant certificates that we may issue under a separate agreement. We will describe in the applicable prospectus
supplement the terms of the series of warrants, including:
|
·
|
the offering price and aggregate number of warrants offered;
|
|
·
|
the currency for which the warrants may be purchased;
|
|
·
|
in the case of warrants to purchase debt securities, the principal amount of debt securities purchasable upon exercise of one warrant and the price at, and currency in which, this principal amount of debt securities may be purchased upon such exercise;
|
|
·
|
if applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with each such security or each principal amount of such security;
|
|
·
|
if applicable, the date on and after which the warrants and the related securities will be separately transferable;
|
|
·
|
in the case of warrants to purchase common stock or preferred stock, the number of shares of common stock or preferred stock, as the case may be, purchasable upon the exercise of one warrant and the price at which these shares may be purchased upon such exercise;
|
|
·
|
the warrant agreement under which the warrants will be issued;
|
|
·
|
the effect of any merger, consolidation, sale or other disposition of our business on the warrant agreement and the warrants;
|
|
·
|
anti-dilution provisions of the warrants, if any;
|
|
·
|
the terms of any rights to redeem or call the warrants;
|
|
·
|
any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants;
|
|
·
|
the dates on which the right to exercise the warrants will commence and expire or, if the warrants are not continuously exercisable during that period, the specific date or dates on which the warrants will be exercisable;
|
|
·
|
the manner in which the warrant agreement and warrants may be modified;
|
|
·
|
the identities of the warrant agent and any calculation or other agent for the warrants;
|
|
·
|
federal income tax consequences of holding or exercising the warrants;
|
|
·
|
the terms of the securities issuable upon exercise of the warrants;
|
|
·
|
any securities exchange or quotation system on which the warrants or any securities deliverable upon exercise of the warrants may be listed; and
|
|
·
|
any other specific terms, preferences, rights or limitations of or restrictions on the warrants.
|
Before exercising their
warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon such exercise, including:
|
·
|
in the case of warrants to purchase common stock or preferred stock, the right to receive dividends, if any, or, payments upon our liquidation, dissolution or winding up or to exercise voting rights, if any; or
|
|
·
|
in the case of warrants to purchase debt securities, the right to receive payments of principal of, or premium, if any, or interest on, the debt securities purchasable upon exercise or to enforce covenants in the applicable indenture.
|
Exercise of Warrants
Each warrant will entitle
the holder to purchase the securities that we specify in the applicable prospectus supplement at the exercise price that we describe
in the applicable prospectus supplement. Unless we otherwise specify in the applicable prospectus supplement, holders of the warrants
may exercise the warrants at any time up to 5:00 p.m. Eastern Time on the expiration date that we set forth in the applicable prospectus
supplement. After the close of business on the expiration date, unexercised warrants will become void.
Holders of the warrants
may exercise the warrants by delivering the warrant certificate representing the warrants to be exercised together with specified
information, and paying the required amount to the warrant agent in immediately available funds, as provided in the applicable
prospectus supplement. We will set forth on the reverse side of the warrant certificate, and in the applicable prospectus supplement,
the information that the holder of the warrant will be required to deliver to the warrant agent.
Upon receipt of the
required payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant
agent or any other office indicated in the applicable prospectus supplement, we will issue and deliver the securities purchasable
upon such exercise. If fewer than all of the warrants represented by the warrant certificate are exercised, then we will issue
a new warrant certificate for the remaining amount of warrants. If we so indicate in the applicable prospectus supplement, holders
of the warrants may surrender securities as all or part of the exercise price for warrants.
Description
Of Debt Securities
The following is a
general description of the debt securities that we may offer from time to time. The particular terms of the debt securities offered
by any prospectus supplement and the extent, if any, to which the general provisions described below may apply to those securities
will be described in the applicable prospectus supplement. We also may sell hybrid securities that combine certain features of
debt securities and other securities described in this prospectus. As you read this section, please remember that the specific
terms of a debt security as described in the applicable prospectus supplement will supplement and may modify or replace the general
terms described in this section. If there are differences between the applicable prospectus supplement and this prospectus, the
applicable prospectus supplement will control. As a result, the statements we make in this section may not apply to the debt security
you purchase.
Except as otherwise
defined herein, capitalized terms used but not defined in this section have the respective meanings set forth in the applicable
indenture. As used in this section, “Northwest Biotherapeutics” refers to Northwest Biotherapeutics, Inc. on an unconsolidated
basis and does not include any of its consolidated subsidiaries.
General
The debt securities
that we offer will be senior debt securities or subordinated debt securities and may be secured or unsecured. We will issue senior
debt securities under an indenture, which we refer to as the senior indenture, to be entered into between Northwest Biotherapeutics
and the trustee named in the applicable prospectus supplement. We will issue subordinated debt securities under an indenture, which
we refer to as the subordinated indenture, to be entered into between Northwest Biotherapeutics and the trustee named in the applicable
prospectus supplement. We refer to the senior indenture and the subordinated indenture as the indentures, and to each of the trustees
under the indentures as a trustee. In addition, the indentures may be supplemented or amended as necessary to set forth the terms
of any debt securities issued under the indentures. You should read the indentures, including any amendments or supplements, carefully
to fully understand the terms of the debt securities. The forms of the indentures have been filed as exhibits to the registration
statement of which this prospectus is a part. The indentures are subject to, and are governed by, the Trust Indenture Act of 1939.
The senior debt securities
will be Northwest Biotherapeutics’ unsubordinated obligations. They will rank equally with each other and all other unsubordinated
debt, unless otherwise indicated in the applicable prospectus supplement. The subordinated debt securities will be subordinated
in right of payment to the prior payment in full of our senior debt. See “Subordination of Subordinated Debt Securities.”
The subordinated debt securities will rank equally with each other, unless otherwise indicated in the applicable prospectus supplement.
We will indicate in each applicable prospectus supplement relating to subordinated debt securities, as of the most recent practicable
date, the aggregate amount of our outstanding debt that would rank senior to the subordinated debt securities.
The indentures do not
limit the amount of debt securities that can be issued thereunder and provide that debt securities of any series may be issued
thereunder up to the aggregate principal amount that we may authorize from time to time. Unless otherwise provided in the prospectus
supplement, the indentures do not limit the amount of other indebtedness or securities that we may issue. We may issue debt securities
of the same series at more than one time and, unless prohibited by the terms of the series, we may reopen a series for issuances
of additional debt securities, without the consent of the holders of the outstanding debt securities of that series. All debt securities
issued as a series, including those issued pursuant to any reopening of a series, will vote together as a single class unless otherwise
described in the prospectus supplement for such series.
Reference is made to
the prospectus supplement for the following and other possible terms of each series of the debt securities in respect of which
this prospectus is being delivered:
|
·
|
the title of the debt securities;
|
|
·
|
any limit upon the aggregate principal amount of the debt securities of that series that may be authenticated and delivered under the applicable indenture, except for debt securities authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, other debt securities of that series;
|
|
·
|
the date or dates on which the principal and premium, if any, of the debt securities of the series is payable;
|
|
·
|
the rate or rates, which may be fixed or variable, at which the debt securities of the series shall bear interest or the manner of calculation of such rate or rates, if any, including any procedures to vary or reset such rate or rates, and the basis upon which interest will be calculated if other than that of a 360-day year of twelve 30-day months;
|
|
·
|
the date or dates from which such interest shall accrue, the dates on which such interest will be payable or the manner of determination of such dates, and the record date for the determination of holders to whom interest is payable on any such dates;
|
|
·
|
any trustees, authenticating agents or paying agents with respect to such series, if different from those set forth in the applicable indenture;
|
|
·
|
the right, if any, to extend the interest payment periods or defer the payment of interest and the duration of such extension or deferral;
|
|
·
|
the period or periods within which, the price or prices at which and the terms and conditions upon which, debt securities of the series may be redeemed, in whole or in part, at the option of Northwest Biotherapeutics;
|
|
·
|
the obligation, if any, of Northwest Biotherapeutics to redeem, purchase or repay debt securities of the series pursuant to any sinking fund or analogous provisions, including payments made in cash in anticipation of future sinking fund obligations, or at the option of a holder thereof and the period or periods within which, the price or prices at which, and the terms and conditions upon which, debt securities of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;
|
|
·
|
the form of the debt securities of the series including the form of the trustee's certificate of authentication for such series;
|
|
·
|
if other than denominations of $2,000 and any integral multiple of $1,000 in excess thereof, the denominations in which securities of the series shall be issuable;
|
|
·
|
the currency or currencies in which payment of the principal of, premium, if any, and interest on, debt securities of the series shall be payable;
|
|
·
|
if the principal amount payable at the stated maturity of debt securities of the series will not be determinable as of any one or more dates prior to such stated maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof that will be due and payable upon declaration of the maturity thereof or upon any maturity other than the stated maturity or that will be deemed to be outstanding as of any such date, or, in any such case, the manner in which such deemed principal amount is to be determined;
|
|
·
|
the terms of any repurchase or remarketing rights;
|
|
·
|
if the securities of the series shall be issued in whole or in part in the form of a global security or securities, the type of global security to be issued; the terms and conditions, if different from those contained in the applicable indenture, upon which such global security or securities may be exchanged in whole or in part for other individual securities in definitive registered form; the depositary for such global security or securities; and the form of any legend or legends to be borne by any such global security or securities in addition to or in lieu of the legends referred to in the indenture;
|
|
·
|
whether the debt securities of the series will be convertible into or exchangeable for other debt securities, registered shares or other securities of any kind of Northwest Biotherapeutics or another obligor, and, if so, the terms and conditions upon which such debt securities will be so convertible or exchangeable, including the initial conversion or exchange price or rate or the method of calculation, how and when the conversion price or exchange ratio may be adjusted, whether conversion or exchange is mandatory, at the option of the holder or at Northwest Biotherapeutics’ option, the conversion or exchange period, and any other provision in addition to or in lieu of those described herein;
|
|
·
|
any additional restrictive covenants or events of default that will apply to the debt securities of the series, or any changes to the restrictive covenants set forth in the applicable indenture that will apply to the debt securities of the series, which may consist of establishing different terms or provisions from those set forth in the applicable indenture or eliminating any such restrictive covenant or event of default with respect to the debt securities of the series;
|
|
·
|
any provisions granting special rights to holders when a specified event occurs;
|
|
·
|
if the amount of principal or any premium or interest on debt securities of a series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts will be determined;
|
|
·
|
any special tax implications of the debt securities, including provisions for original issue discount securities, if offered;
|
|
·
|
whether and upon what terms debt securities of a series may be defeased if different from the provisions set forth in the applicable indenture;
|
|
·
|
with regard to the debt securities of any series that do not bear interest, the dates for certain required reports to the trustee;
|
|
·
|
whether the debt securities of the series will be issued as unrestricted securities or restricted securities, and, if issued as restricted securities, the rule or regulation promulgated under the Securities Act in reliance on which they will be sold;
|
|
·
|
whether the series will be issued with guarantees and, if so, the identity of the guarantor and the terms, if any, of any guarantee of the payment of principal and interest, if any, with respect to the series and any corresponding changes to the indenture as then in effect;
|
|
·
|
if the debt securities are subordinated debt securities, the subordination terms of the debt securities and any related guarantee; and
|
|
·
|
any and all additional, eliminated or changed terms that shall apply to the debt securities of the series, including any terms that may be required by or advisable under United States laws or regulations, including the Securities Act and the rules and regulations promulgated thereunder, or advisable in connection with the marketing of debt securities of that series.
|
“Principal”
when used herein includes any premium on any series of the debt securities.
Unless otherwise provided
in the prospectus supplement relating to any debt securities, principal and interest, if any, will be payable, and transfers of
the debt securities may be registered, at the office or offices or agency we maintain for such purposes, provided that payment
of interest on the debt securities will be paid at such place by check mailed to the persons entitled thereto at the addresses
of such persons appearing on the security register. Interest on the debt securities, if any, will be payable on any interest payment
date to the persons in whose names the debt securities are registered at the close of business on the record date for such interest
payment.
The debt securities
may be issued in fully registered form. Additionally, the debt securities may be represented in whole or in part by one or more
global notes registered in the name of a depository or its nominee and, if so represented, interests in such global note will be
shown on, and transfers thereof will be effected only through, records maintained by the designated depository and its participants.
Unless otherwise provided
in the prospectus supplement relating to any debt securities, the debt securities may be exchanged for an equal aggregate principal
amount of debt securities of the same series and date of maturity in such authorized denominations as may be requested upon surrender
of the debt securities at an agency that we maintain for such purpose and upon fulfillment of all other requirements of such agent.
No service charge will be made for any registration of transfer or exchange of the debt securities, but we may require payment
of an amount sufficient to cover any associated tax or other governmental charge.
The indentures require
the annual filing by Northwest Biotherapeutics with the trustee of a certificate as to compliance with certain covenants contained
in the indentures.
We will comply with
Section 14(e) under the Exchange Act, to the extent applicable, and any other tender offer rules under the Exchange Act that may
be applicable, in connection with any obligation to purchase debt securities at the option of the holders thereof. Any such obligation
applicable to a series of debt securities will be described in the prospectus supplement relating thereto.
Unless otherwise described
in a prospectus supplement relating to any debt securities, there are no covenants or provisions contained in the indentures that
may afford the holders of debt securities protection in the event that we enter into a highly leveraged transaction.
The statements made
hereunder relating to the indentures and the debt securities are summaries of certain provisions thereof and are qualified in their
entirety by reference to all provisions of the indentures and the debt securities and the descriptions thereof, if different, in
the applicable prospectus supplement.
Form of the Debt Securities
The indentures provide
that we may issue debt securities in the forms, including temporary or definitive global form, established by a board resolution
or in a supplemental indenture.
Unless indicated otherwise
in the applicable prospectus supplement, we will issue debt securities in denominations of $2,000 or any integral multiple of $1,000,
and interest on the debt securities, if any, will be computed on the basis of a 360-day year of twelve 30-day months.
Registration, Transfer, Payment and Paying Agent
We will maintain an
office or agency where the debt securities may be presented for payment, registration of transfer and exchange, and, if applicable,
for conversion. The indenture trustee is appointed security registrar for purposes of registering, and registering transfers of,
the debt securities. Unless otherwise indicated in a board resolution or supplemental indenture, the indenture trustee also will
act as paying agent, and will be authorized to pay principal and interest, if any, on any debt security of any series.
There will be no service
charge for any registration of transfer or exchange of debt securities, but we or the indenture trustee may require a holder to
pay any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of the
debt securities, other than certain exchanges not involving any transfer, and other than certain exchanges or transfers as may
be specified in a board resolution or supplemental indenture.
Global Debt Securities
Unless otherwise indicated
in the applicable prospectus supplement for a series of debt securities, each series of the debt securities will be issued in global
form, which means that we will deposit with the depositary identified in the applicable prospectus supplement (or its custodian)
one or more certificates representing the entire series, as described below under “Book-Entry Procedures and Settlement.”
Global debt securities may be issued in either temporary or definitive form.
The applicable prospectus
supplement will describe any limitations and restrictions relating to a series of global debt securities.
Subordination of Subordinated Debt
Securities
We will set forth in
the applicable prospectus supplement the terms and conditions, if any, upon which any series of subordinated debt securities is
subordinated to debt securities of another series or to our other indebtedness. The terms will include a description of:
|
(1)
|
the indebtedness ranking senior to the debt securities being offered;
|
|
(2)
|
the restrictions, if any, on payments to the holders of the debt securities being offered while a default with respect to the senior indebtedness is continuing; and
|
|
(3)
|
the provisions requiring holders of the debt securities being offered to remit some payments to the holders of senior indebtedness.
|
Events of Default
Except as otherwise
set forth in the prospectus supplement relating to any debt securities, an event of default with respect to the debt securities
of any series is defined in the indentures as:
|
(1)
|
default in the payment of any installment of interest upon any of the debt securities of such series as and when the same shall become due and payable, and continuance of such default for a period of 30 days;
|
|
(2)
|
default in the payment of all or any part of the principal of or premium, if any, on any of the debt securities of such series as and when the same shall become due and payable either at maturity, upon any redemption or repurchase, by declaration or otherwise;
|
|
(3)
|
default in the performance, or breach, of any other covenant or warranty of Northwest Biotherapeutics in respect of the debt securities of such series and any related guarantee or set forth in the applicable indenture (other than the failure to comply with any covenant or agreement to file with the trustee information required to be filed with the SEC or a default in the performance or breach of a covenant or warranty included in the applicable indenture solely for the benefit of one or more series of debt securities other than such series) and continuance of such default or breach for a period of 90 days after due notice by the trustee or by the holders of at least 25% in principal amount of the outstanding securities of such series; or
|
|
(4)
|
certain events of bankruptcy, insolvency or reorganization of Northwest Biotherapeutics.
|
Any failure to perform,
or breach of, any covenant or agreement by Northwest Biotherapeutics in respect of the debt securities with respect to the filing
with the trustee of the information required to be filed with the SEC shall not be a default or an event of default. Remedies against
Northwest Biotherapeutics for any such failure or breach will be limited to liquidated damages. If there is such a failure or breach
and continuance of such failure or breach for a period of 90 days after the date on which there has been given, by registered or
certified mail, to Northwest Biotherapeutics by the trustee or to Northwest Biotherapeutics and the trustee by the holders of at
least 25% in principal amount of the outstanding debt securities of such series, a written notice specifying such failure or breach
and requiring it to be remedied and stating that such notice is a “Notice of Reporting Noncompliance” under the indenture,
Northwest Biotherapeutics will pay liquidated damages to all holders of debt securities, at a rate per year equal to 0.25% of the
principal amount of such debt securities from the 90th day following such notice to and including the 150th day following such
notice and at a rate per year equal to 0.5% of the principal amount of such Securities from and including the 151st day following
such notice, until such failure or breach is cured.
Additional Events of
Default may be added for the benefit of holders of certain series of debt securities that, if added, will be described in the prospectus
supplement relating to such debt securities.
If an event of default
shall have occurred and be continuing in respect of a series of debt securities, in each and every case, unless the principal of
all the debt securities of such series shall have already become due and payable, either the trustee or the holders of not less
than 25% in aggregate principal amount of the debt securities of such series then outstanding, by notice in writing to Northwest
Biotherapeutics and, if given by such holders, to the trustee may declare the unpaid principal of all the debt securities to be
due and payable immediately.
The holders of a majority
in aggregate principal amount of a series of debt securities, by written notice to Northwest Biotherapeutics and the trustee may
waive any existing default in the performance of any of the covenants contained in the indenture or established with respect to
such series of debt securities and its consequences, except a default in the payment of the principal of, premium, if any, or interest
on, any of the debt securities of such series as and when the same shall become due by the terms of such series. Upon
any such waiver, the default covered thereby and any event of default arising therefrom shall be deemed to be cured for all purposes
of the indenture.
The holders of a majority
in aggregate principal amount of the outstanding debt securities of a series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the trustee or exercising any trust or power conferred on the trustee
with respect to the debt securities of such series; provided, however, that such direction shall not be in conflict with any rule
of law or with the indenture or be unduly prejudicial to the rights of holders of securities of any other outstanding series of
debt securities. Subject to the terms of the indenture, the trustee shall have the right to decline to follow any such
direction if the trustee in good faith shall determine that the proceeding so directed would involve the trustee in personal liability.
Merger
Each indenture provides
that Northwest Biotherapeutics may merge or consolidate with any other person or sell or convey all or substantially all of its
assets to any person if:
(1) either
(a) Northwest Biotherapeutics is the continuing company or (b) the successor person expressly assumes all of the obligations of
the Company under the applicable indenture, is an entity treated as a corporation for U.S. tax purposes and obtains either (x)
an opinion, in form and substance reasonably acceptable to the Trustee or (y) a ruling from the U.S. Internal Revenue Service,
in either case (x) or (y) to the effect that such merger or consolidation, or such sale or conveyance, will not result in an exchange
of the debt securities for new debt instruments for U.S. federal income tax purposes; and
(2)
no event of default and no event that, after notice or lapse of time or both, would become an event of default shall be continuing
immediately after such merger or consolidation, or such sale or conveyance.
Satisfaction and Discharge of Indentures
The indenture with
respect to any series of debt securities (except for certain specified surviving obligations, including our obligation to pay the
principal of and interest, if any, on the debt securities of such series) will be discharged and cancelled upon the satisfaction
of certain conditions, including the payment of all the debt securities of such series or the deposit with the trustee under such
indenture of cash or appropriate government obligations or a combination thereof sufficient for such payment or redemption in accordance
with the applicable indenture and the terms of the debt securities of such series.
Modification of the Indentures
Northwest Biotherapeutics
and the trustee may from time to time and at any time enter into an indenture or indentures supplemental to the indenture without
the consent of any holders of any series of securities for one or more of the following purposes:
|
·
|
to cure any ambiguity, defect or inconsistency in the indenture or debt securities of any series, including making any such changes as are required for the indenture to comply with the Trust Indenture Act;
|
|
·
|
to add an additional obligor on the debt securities or to evidence the succession of another person to Northwest Biotherapeutics, or successive successions, and the assumption by the successor person of the covenants, agreements and obligations of Northwest Biotherapeutics pursuant to provisions in the indenture concerning consolidation, merger, the sale of assets or successor entities;
|
|
·
|
to provide for uncertificated debt securities in addition to or in place of certificated debt securities;
|
|
·
|
to add to the covenants of Northwest Biotherapeutics for the benefit of the holders of any outstanding series of debt securities or to surrender any of Northwest Biotherapeutics’ rights or powers under the indenture;
|
|
·
|
to add any additional Events of Default for the benefit of the holders of any outstanding series of debt securities;
|
|
·
|
to change or eliminate any of the provisions of the indenture, provided that any such change or elimination shall not become effective with respect to any outstanding debt security of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision;
|
|
·
|
to secure the debt securities of any series;
|
|
·
|
to make any other change that does not adversely affect the rights of any holder of outstanding debt securities in any material respect;
|
|
·
|
to provide for the issuance of and establish the form and terms and conditions of a series of debt securities, to provide which, if any, of the covenants of Northwest Biotherapeutics shall apply to such series, to provide which of the events of default shall apply to such series, to name one or more guarantors and provide for guarantees of such series of debt securities, to provide for the terms and conditions upon which any guarantees by a guarantor of such series may be released or terminated, or to define the rights of the holders of such series of debt securities;
|
|
·
|
to issue additional debt securities of any series; provided that such additional debt securities have the same terms as, and be deemed part of the same series as, the applicable series of debt securities to the extent required under the indenture; or
|
|
·
|
to evidence and provide for the acceptance of appointment by a successor trustee with respect to the debt securities of one or more series and to add to or change any of the provisions of the indenture as shall be necessary to provide for or facilitate the administration of the trust by more than one trustee.
|
In addition, under
the indenture, with the written consent of the holders of not less than a majority in aggregate principal amount of the debt securities
of each series at the time outstanding that is affected, Northwest Biotherapeutics and the trustee, from time to time and at any
time may enter into an indenture or indentures to supplement the indenture. However, the following changes may only
be made with the consent of each holder of outstanding debt securities affected:
|
·
|
extend a fixed maturity of or any installment of principal of any debt securities of any series or reduce the principal amount thereof or reduce the amount of principal of any original issue discount security that would be due and payable upon declaration of acceleration of the maturity thereof;
|
|
·
|
reduce the rate of or extend the time for payment of interest on any debt security of any series;
|
|
·
|
reduce the premium payable upon the redemption of any debt security;
|
|
·
|
make any debt security payable in currency other than that stated in the debt security;
|
|
·
|
impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof or, in the case of redemption, on or after the redemption date;
|
|
·
|
modify the subordination provisions applicable to any debt security or the related guarantee in a manner materially adverse to the holder thereof; or
|
|
·
|
reduce the percentage of debt securities, the holders of which are required to consent to any such supplemental indenture or indentures.
|
A supplemental indenture
that changes or eliminates any covenant, event of default or other provision of the indenture that has been expressly included
solely for the benefit of one or more particular series of securities, if any, or which modifies the rights of the holders of securities
of such series with respect to such covenant, event of default or other provision, shall be deemed not to affect the rights under
the indenture of the holders of securities of any other series.
It will not be necessary
for the consent of the holders to approve the particular form of any proposed supplement, amendment or waiver, but it shall be
sufficient if such consent approves the substance of it.
Defeasance and Discharge of Obligations
Northwest Biotherapeutics’
obligations with respect to a series of debt securities will be discharged upon compliance with the conditions under the caption
“Covenant Defeasance” if, with respect to all debt securities of such series that have not been previously delivered
to the trustee for cancellation or that have not become due and payable as described below, such debt securities of such series
have been paid by Northwest Biotherapeutics by depositing irrevocably with the trustee, in trust, funds or governmental obligations,
or a combination thereof, sufficient, in the opinion of a nationally recognized firm of certified public accountants, to pay at
maturity or upon redemption all such outstanding debt securities of such series, such deposit to include: principal; premium, if
any; interest due or to become due to such date of maturity or date fixed for redemption, as the case may be; and all other payments
due under the terms of the indenture with respect to the debt securities of such series.
Notwithstanding the
above, Northwest Biotherapeutics may not be discharged from the following obligations, which will survive until such date of maturity
or the redemption date for a series of debt securities: to make any interest or principal payments that may be required; to register
the transfer or exchange of a series of debt securities; to execute and authenticate a series of debt securities; to replace stolen,
lost or mutilated debt securities of such series; to maintain an office or agency; to maintain paying agencies; and to appoint
new trustees as required.
Northwest Biotherapeutics
also may not be discharged from the following obligations which will survive the satisfaction and discharge of a series of debt
securities: to compensate and reimburse the trustee in accordance with the terms of the indenture; to receive unclaimed payments
held by the trustee for at least one year after the date upon which the principal, if any, or interest on a series of debt securities
shall have respectively come due and payable and remit those payments to the holders if required; and to withhold or deduct taxes
as provided in the indenture.
Covenant Defeasance
Upon compliance with
specified conditions, Northwest Biotherapeutics will not be required to comply with some covenants contained in the indenture,
and any omission to comply with the obligations will not constitute a default or event of default relating to a series of debt
securities, or, if applicable, Northwest Biotherapeutics’ obligations with respect to a series of debt securities will be
discharged. These conditions are:
|
·
|
Northwest Biotherapeutics irrevocably deposits in trust with the trustee or, at the option of the trustee, with a trustee satisfactory to the trustee and Northwest Biotherapeutics under the terms of an irrevocable trust agreement in form and substance satisfactory to the trustee, funds or governmental obligations or a combination thereof sufficient, in the opinion of a nationally recognized firm of certified public accountants, to pay principal of, premium, if any, and interest on the outstanding debt securities of such series to maturity or redemption, as the case may be, and to pay all other amounts payable by it hereunder, provided that (A) the trustee of the irrevocable trust shall have been irrevocably instructed to pay such funds or the proceeds of such governmental obligations to the trustee and (B) the trustee shall have been irrevocably instructed to apply such funds or the proceeds of such governmental obligations to the payment of principal, premium, if any, and interest with respect to such series of debt securities;
|
|
·
|
Northwest Biotherapeutics delivers to the trustee an officer’s certificate stating that all conditions precedent specified herein relating to defeasance or covenant defeasance, as the case may be, have been complied with, and an opinion of counsel to the same effect;
|
|
·
|
no event of default shall have occurred and be continuing, and no event which with notice or lapse of time or both would become such an event of default shall have occurred and be continuing, on the date of such deposit;
|
|
·
|
Northwest Biotherapeutics shall have delivered to the trustee an opinion of counsel or a ruling received from the Internal Revenue Service to the effect that the holders of such series of debt securities will not recognize income, gain or loss for federal income tax purposes as a result of Northwest Biotherapeutics’ exercise of such defeasance or covenant defeasance and will be subject to U.S. Federal income tax in the same amount and in the same manner and at the same times as would have been the case if such election had not been exercised;
|
|
·
|
such defeasance or covenant defeasance shall not (i) cause the trustee to have a conflicting interest for purposes of the Trust Indenture Act with respect to any securities or (ii) result in the trust arising from such deposit to constitute, unless it is registered as such, a regulated investment company under the Investment Company Act of 1940; and
|
|
·
|
such defeasance or covenant defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations which may be imposed on Northwest Biotherapeutics pursuant to the indenture.
|
Description
Of THE SHARE PURCHASE CONTRACTS AND THE SHARE PURCHASE UNITS
We may issue share
purchase contracts representing contracts obligating holders to purchase from us, and us to sell to the holders, a specified or
varying number of our shares of common stock at a future date or dates. The price per share and the number of shares may be fixed
at the time the share purchase contracts are entered into or may be determined by reference to a specific formula set forth in
the share purchase contracts. The share purchase contracts may be entered into separately or as a part of a share purchase unit
that consists of a share purchase contract and either shares of preferred stock, debt securities or debt obligations of third parties
(including United States treasury securities or other share purchase contracts), or any combination of the foregoing that would
secure the holders’ obligations to purchase the securities under such share purchase contract. The share purchase contracts
may require us to make periodic payments to the holders of the share purchase units. These payments may be unsecured or prefunded
and may be paid on a current or on a deferred basis. The share purchase contracts may require holders to secure their obligations
under the contracts in a specified manner.
The applicable
prospectus supplement will describe the terms of any share purchase contracts or share purchase units and, if applicable, prepaid
share purchase contracts.
Description
Of Units
The following description,
together with the additional information we include in any applicable prospectus supplement, summarizes the material terms and
provisions of the units that we may offer under this prospectus. Units may be offered independently or together with
common stock, preferred stock, debt securities, warrants, and/or share purchase contracts offered by any prospectus supplement,
and may be attached to or separate from those securities.
While the terms we
have summarized below will generally apply to any future units that we may offer under this prospectus, we will describe the particular
terms of any series of units that we may offer in more detail in the applicable prospectus supplement. The terms of
any units offered under a prospectus supplement may differ from the terms described below.
We will incorporate
by reference into the registration statement of which this prospectus is a part the form of unit agreement, including a form of
unit certificate, if any, that describes the terms of the series of units we are offering before the issuance of the related series
of units. The following summaries of material provisions of the units and the unit agreements are subject to, and qualified
in their entirety by reference to, all the provisions of the unit agreement applicable to a particular series of units. We
urge you to read the applicable prospectus supplements related to the units that we sell under this prospectus, as well as the
complete unit agreements that contain the terms of the units.
General
We may issue units
consisting of common stock, preferred stock, debt securities, warrants, share purchase contracts, or any combination thereof. Each
unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the
holder of a unit will have the rights and obligations of a holder of each included security. The unit agreement under
which a unit is issued may provide that the securities included in the unit may not be held or transferred separately, at any time,
or at any time before a specified date.
We will describe in
the applicable prospectus supplement the terms of the series of units, including the following:
|
·
|
the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
|
|
·
|
any provisions of the governing unit agreement that differ from those described below; and
|
|
·
|
any provisions for the issuance, payment, settlement, transfer, or exchange of the units or of the securities comprising the units.
|
The provisions described
in this section, as well as those described under “Description of Common Stock,” “Description of Preferred Stock,”
“Description of Warrants,” “Description of Debt Securities,” and “Description of Units” will
apply to each unit and to any common stock, preferred stock, debt security or warrant included in each unit, respectively.
Issuance in Series
We may issue units
in such amounts and in such numerous distinct series as we determine.
Certain Anti-Takeover
And Indemnification Provisions Of Our Certificate Of Incorporation And By-Laws And Delaware Law
The following is a
summary of certain anti-takeover and indemnification provisions of the DGCL and our Certificate of Incorporation and Bylaws which
affect us and our stockholders. Such provisions of the DGCL and our Certificate of Incorporation and Bylaws may make
more difficult the acquisition of the Company by tender offer, a proxy contest or otherwise or the removal of our officers and
directors. The description below is intended as only a summary. You can access more information by referring
to the DGCL and our Certificate of Incorporation and Bylaws, and the following summary is qualified in its entirety by reference
such documents and the applicable provisions of the DGCL.
Certificate of Incorporation and
Bylaws
Our Certificate of
Incorporation, as amended, and our Bylaws, each as currently in effect, also contain certain provisions that may delay, discourage
or make more difficult a third-party acquisition of control of us:
|
·
|
a classified board of directors, with three classes of directors, each serving for a staggered three-year term, such that not all members of the board of directors may be elected at one time;
|
|
·
|
any vacancies on the board of directors may be filled by a majority of the directors then serving, although not a quorum;
|
|
·
|
a director may be removed from office only for cause at a special meeting of stockholders called for that purpose, by the affirmative vote of the holders of not less than two-thirds of the shares entitled to elect the director or directors whose removal is being sought;
|
|
·
|
the ability of the board of directors to issue preferred stock that could dilute the stock ownership of a potential unsolicited acquirer and so possibly hinder an acquisition of control of us that is not approved by our board of directors, including through the use of preferred stock in connection with a shareholder rights plan which we could adopt by action of the board of directors;
|
|
·
|
the requirement that certain provisions of the Certificate of Incorporation, including some of the provisions discussed herein, can only be amended with an affirmative vote of the holders at least two-thirds of the then-outstanding voting stock;
|
|
·
|
the requirement that the Bylaws may be amended by the board of directors or by the stockholders; provided that in the case of amendments by the stockholders the affirmative vote of at least 66 2/3% of the then outstanding voting stock is required; and
|
|
·
|
the inability of our stockholders to call a special meeting of stockholders, the limitation of matters to be acted upon at an annual meeting of stockholders to those matters proposed by the company or properly brought before the meeting and the limitation of matters to be acted upon at a special meeting of stockholders to matters which we place on the agenda for the meeting.
|
Delaware Takeover Statute
We are governed by
Section 203 of the DGCL, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder
for a period of three years after the date that the stockholder became an interested stockholder, unless:
|
·
|
before that date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
|
|
·
|
upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the number of shares outstanding those shares owned by persons who are directors and also officers or which can be issued under employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
|
·
|
on or after that date, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.
|
In general, Section
203 defines an interested stockholder as any entity or person who, with affiliates and associates owns, or within the three year
period immediately prior to the business combination, beneficially owned 15% or more of the outstanding voting stock of the corporation. Section
203 defines business combination to include:
|
·
|
any merger or consolidation involving the corporation and the interested stockholder;
|
|
·
|
any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
|
|
·
|
subject to specified exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
|
|
·
|
any transaction involving the corporation that increases the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
|
|
·
|
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
|
Copies of our Certificate
of Incorporation and Bylaws, as amended, have been filed with and are publicly available at or from the SEC as described under
the heading “Where You Can Find More Information.”
Limitation of Liability; Indemnification
Our Certificate of
Incorporation contains certain provisions permitted under the DGCL relating to the liability of directors. These provisions eliminate
a director’s personal liability for monetary damages resulting from a breach of fiduciary duty to the fullest extent permitted
by the DGCL. Our Bylaws also provide that we must indemnify our directors and officers to the fullest extent permitted
by the DGCL and also provide that we must pay expenses, as incurred, to our directors and officers in connection with a legal proceeding
to the fullest extent permitted by the DGCL, subject to very limited exceptions.
Insofar as indemnification
for liabilities under the Securities Act may be permitted to directors, officers and controlling persons of Northwest Biotherapeutics
pursuant to the foregoing provisions or otherwise, we have been informed that, in the opinion of the SEC, indemnification under
the Securities Act is against public policy and is unenforceable.
Plan
Of Distribution
We may offer and sell
the securities described in this prospectus:
|
·
|
through one or more underwriters or dealers;
|
|
·
|
through a block trade in which the broker or dealer engaged to handle the block trade will attempt to sell the securities as agent, but may position and resell a portion of the block as principal to facilitate the transaction;
|
|
·
|
directly to one or more purchasers (through a specific bidding or auction process or otherwise);
|
|
·
|
in “at the market offerings,” within the meaning of Rule 415(a)(4) of the Securities Act; or
|
|
·
|
through a combination of any of these methods of sale.
|
The distribution of
the securities described in this prospectus may be effected from time to time in one or more transactions either:
|
·
|
at a fixed price or prices, which may be changed;
|
|
|
|
|
·
|
at market prices prevailing at the time of sale;
|
|
|
|
|
·
|
at prices relating to the prevailing market prices; or
|
|
|
|
|
·
|
at negotiated prices.
|
Offers to purchase
the securities may be solicited by agents designated by us from time to time. Any agent involved in the offer or sale of the securities
will be named, and any commissions payable by us to the agent will be described, in the applicable prospectus supplement. Unless
otherwise indicated in the applicable prospectus supplement, any such agent will be acting on a best efforts basis for the period
of its appointment. Any agent may be deemed to be an underwriter, as that term is defined in the Securities Act, of
the securities so offered and sold.
If we offer and sell
securities through an underwriter or underwriters, we will execute an underwriting agreement with the underwriter or underwriters. The
names of the specific managing underwriter or underwriters, as well as any other underwriters, and the terms of the transactions,
including compensation of the underwriters and dealers, which may be in the form of discounts, concessions or commissions, if any,
will be described in the applicable prospectus supplement, which will be used by the underwriters to make resales of the securities.
If we offer and sell
securities through a dealer, we or an underwriter will sell the securities to the dealer, as principal. The dealer may
then resell the securities to the public at varying prices to be determined by the dealer at the time of resale. The
name of the dealer and the terms of the transactions will be set forth in the applicable prospectus supplement. Any
dealer may be deemed to be an underwriter, as that term is defined in the Securities Act, of the securities so offered and sold.
We may solicit offers
to purchase the securities directly and we may sell the securities directly to institutional or other investors. The
terms of these sales, including the terms of any bidding or auction process, if utilized, will be described in the applicable prospectus
supplement. We may enter into agreements with agents, underwriters and dealers under which we may agree to indemnify
the agents, underwriters and dealers against certain liabilities, including liabilities under the Securities Act, or to contribute
to payments they may be required to make with respect to these liabilities. The terms and conditions of this indemnification
or contribution will be described in the applicable prospectus supplement. Some of the agents, underwriters or dealers,
or their affiliates, may be customers of, engage in transactions with or perform services for us in the ordinary course of business.
If the applicable prospectus
supplement indicates, we may authorize agents, underwriters or dealers to solicit offers from certain types of institutions to
purchase securities at the public offering price under delayed delivery contracts. These contracts would provide for
payment and delivery on a specified date in the future. The contracts would be subject only to those conditions described
in the prospectus supplement. The applicable prospectus supplement will describe the commissions payable for solicitation
of those contracts.
We may from time to
time engage a firm to act as our agent for one or more offerings of our securities. We sometimes refer to this agent as our “offering
agent.” If we reach an agreement with an offering agent with respect to a specific offering, including the number of securities
and any minimum price below which sales may not be made, then the offering agent will try to sell such securities on the agreed
terms. The offering agent could make sales in privately negotiated transactions or any other method permitted by law,
including sales deemed to be an “at the market” offering as defined in Rule 415 promulgated under the Securities
Act, including sales made directly on the Nasdaq Capital Market, or sales made to or through a market maker other than on an exchange. The
offering agent will be deemed to be an underwriter, as that term is defined in the Securities Act with respect to any sales effected
through an “at the market” offering.
Unless indicated in the applicable
prospectus supplement, all debt securities, depositary shares, warrants and preferred stock will be new issues of securities with
no established trading market. Unless indicated in the applicable prospectus supplement, we do not expect to list the securities
on a securities exchange, except for the common stock, which is listed on the Nasdaq Capital Market. Underwriters involved
in the public offering and sale of these securities may make a market in the securities. They are not obligated to make a market,
however, and may discontinue market making activity at any time. We cannot give any assurance as to the liquidity of the trading
market for any of these securities.
In connection with
any particular offering pursuant to this shelf registration statement, an underwriter may engage in stabilizing transactions, over-allotment
transactions, syndicate covering transactions and penalty bids.
|
·
|
Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum price.
|
|
·
|
Over-allotment involves sales by an underwriter of securities in excess of the number of securities an underwriter is obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by an underwriter is not greater than the number of securities that it may purchase pursuant to an over-allotment option. In a naked short position the number of securities involved is greater than the number of securities in an over-allotment option. An underwriter may close out any short position by either exercising its over-allotment option and/or purchasing securities in the open market.
|
|
·
|
Syndicate covering transactions involve purchases of the securities in the open market after the distribution has been completed in order to cover syndicate short positions where there is an over-allotment option. In determining the source of securities to close out the short position, an underwriter will consider, among other things, the price of securities available for purchase in the open market as compared to the price at which they may purchase securities through the over-allotment option. If an underwriter sells more securities than could be covered by the over-allotment option, a naked short position, the position can only be closed out by buying securities in the open market. A naked short position is more likely to be created if an underwriter is concerned that there could be downward pressure on the price of the securities in the open market after pricing that could adversely affect investors who purchase in the offering.
|
|
·
|
Penalty bids permit representatives to reclaim a selling concession from a syndicate member when the securities originally sold by the syndicate member are purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.
|
These stabilizing transactions,
syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our securities
or preventing or retarding a decline in the market price of the securities. As a result, the price of our securities may be higher
than the price that might otherwise exist in the open market. These transactions may be effected on the Nasdaq Capital Market or
otherwise and, if commenced, may be discontinued at any time.
We, the underwriters
or other agents may engage in derivative transactions involving the securities. These derivatives may consist of short sale transactions
and other hedging activities. The underwriters or agents may acquire a long or short position in the securities, hold or resell
securities acquired and purchase options or futures on the securities and other derivative instruments with returns linked to or
related to changes in the price of the securities. In order to facilitate these derivative transactions, we may enter into security
lending or repurchase agreements with the underwriters or agents. The underwriters or agents may effect the derivative transactions
through sales of the securities to the public, including short sales, or by lending the securities in order to facilitate short
sale transactions by others. The underwriters or agents may also use the securities purchased or borrowed from us or
others (or, in the case of derivatives, securities received from us in settlement of those derivatives) to directly or indirectly
settle sales of the securities or close out any related open borrowings of the securities.
We may also make sales
through the Internet or through other electronic means. Since we may from time to time elect to offer securities directly
to the public, with or without the involvement of agents, underwriters or dealers, utilizing the Internet (sometimes referred to
as the “world wide web”) or other forms of electronic bidding or ordering systems for the pricing and allocation of
such securities, you will want to pay particular attention to the description of that system we will provide in a prospectus supplement.
Such electronic system
may allow bidders to directly participate, through electronic access to an auction site, by submitting conditional offers to buy
that are subject to acceptance by us, and which may directly affect the price or other terms and conditions at which such securities
are sold. These bidding or ordering systems may present to each bidder, on a so-called “real-time” basis,
relevant information to assist in making a bid, such as the clearing spread at which the offering would be sold, based on the bids
submitted, and whether a bidder’s individual bids would be accepted, prorated or rejected. For example, in the
case of a debt security, the clearing spread could be indicated as a number of “basis points” above an index treasury
note. Of course, many pricing methods can and may also be used.
Upon completion of
such an electronic auction process, securities will be allocated based on prices bid, terms of bid or other factors. The
final offering price at which securities would be sold and the allocation of securities among bidders would be based in whole or
in part on the results of the Internet or other electronic bidding process or auction.
Experts
The consolidated financial
statements of Northwest Biotherapeutics appearing in Northwest Biotherapeutics’ Annual Report on Form 10-K for the years
ended December 31, 2015 and December 31, 2014 have been audited by Marcum LLP, independent registered public accounting firm, as
set forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial
statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in
accounting and auditing.
Validity
Of The Securities
Certain legal matters,
including the legality of the securities offered, will be passed upon for us by Kane Kessler, P.C. New York, New York or others
named in the applicable prospectus supplement. If the securities are distributed in an underwritten offering, certain
legal matters will be passed upon for the underwriters by counsel identified in the applicable prospectus supplement.
Where
You Can Find More Information
We file reports, proxy
statements and other documents with the SEC. You may read and copy any document we file at the SEC’s public reference
room at 100 F Street, N.E., Room 1580, Washington, DC 20549. You should call 1-800-SEC-0330 for more information on
the operation of the public reference room. You can review our electronically filed reports, proxy and information statements
on SEC’s web site at www.sec.gov or on our web site at www.nwbio.com. Information included on our web site is
not a part of this prospectus or any prospectus supplement.
This prospectus is
part of a registration statement that we filed with the SEC. The registration statement contains more information than
this prospectus regarding us and our common stock, including certain exhibits and schedules. You can obtain a copy of
the registration statement from the SEC at the address listed above or from the SEC’s Internet site.
Incorporation
Of Certain Documents By Reference
The SEC allows us to
“incorporate” into this prospectus information that we file with the SEC in other documents. This means
that we can disclose important information to you by referring to other documents that contain that information. Any
information that we incorporate by reference is considered part of this prospectus. The documents and reports that we
list below are incorporated by reference into this prospectus. In addition, all documents and reports which we file
pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus are incorporated by reference
in this prospectus as of the respective filing dates of these documents and reports, provided, however, that we are not incorporating
by reference any information furnished (but not filed) under Item 2.02 or Item 7.01 of any Current Report on Form 8-K. Statements
contained in documents that we file with the SEC and that are incorporated by reference in this prospectus will automatically update
and supersede information contained in this prospectus, including information in previously filed documents or reports that have
been incorporated by reference in this prospectus, to the extent the new information differs from or is inconsistent with the old
information.
We have filed the following
documents with the SEC. These documents are incorporated herein by reference as of their respective dates of filing:
|
(1)
|
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed on March 16, 2016 and amended on Form 10-K/A filed on April 29, 2016;
|
|
(2)
|
Our Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2016, March 31, 2016, and September 30, 2015, filed on August 9, 2016, May 11, 2016, and November 9, 2015, respectively.
|
|
(3)
|
Our Current Reports on Form 8-K filed with the SEC on March 3, 2016, May 2, 2016, May 3, 2016, May 16, 2016, June 30, 2016, July 11, 2016, August 23, 2016, September 6, 2016, September 9, 2016, as amended by Form 8-K/A filed on September 19, 2016, and September 15, 2016.
|
|
(4)
|
All of our filings pursuant to the Exchange Act after the date of filing this initial registration statement and prior to the effectiveness of this registration statement; and
|
|
(5)
|
The description of our common stock contained in our Registration Statement on Form 8-A filed on November 14, 2012, including any amendments or reports filed for the purpose of updating that description.
|
You may request a copy
of these documents, which will be provided to you at no cost, by contacting:
Northwest Biotherapeutics, Inc.
4800 Montgomery, Lane, Suite 800
Bethesda, MD 20814
Attention: Corporate Secretary
(240) 497-9024
You should rely only
on the information contained in this prospectus, including information incorporated by reference as described above, or any prospectus
supplement that we have specifically referred you to. We have not authorized anyone else to provide you with different
information. You should not assume that the information in this prospectus or any prospectus supplement is accurate
as of any date other than the date on the front of those documents or that any document incorporated by reference is accurate as
of any date other than its filing date. You should not consider this prospectus to be an offer or solicitation relating
to the securities in any jurisdiction in which such an offer or solicitation relating to the securities is not authorized. Furthermore,
you should not consider this prospectus to be an offer or solicitation relating to the securities if the person making the offer
or solicitation is not qualified to do so, or if it is unlawful for you to receive such an offer or solicitation.
1,384,615 Shares of Common Stock
Class A Warrants to Purchase 1,038,461 Shares of Common Stock
Class B Warrants to Purchase 1,038,461 Shares of Common Stock
Prospectus Supplement dated April 14,
2017
Northwest Biotherapeutics (QB) (USOTC:NWBO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Northwest Biotherapeutics (QB) (USOTC:NWBO)
Historical Stock Chart
From Sep 2023 to Sep 2024