Northwest Biotherapeutics

Kurta Law is investigating broker recommendations of Northwest Biotherapeutics (NASDAQ: NWBO).  Recommendations may have violated securities rules and regulations designed to protect investors from overly risky investments. Regulation Best Interest requires brokers to consider their investors’ risk tolerances before making recommendations. FINRA Rule 2020 prohibits the misrepresentation of investments – brokers are not permitted to omit or misrepresent material information concerning a stock.  

If you believe you suffered investment losses due to broker misconduct, consider reaching out to a securities attorney. Call (877) 600-0098 or email info@kurtalawfirm.com.  

The Offering 

The prospectus dated December 6, 2012, announced that Northwest Biotherapeutics was offering 3,000,000 shares of common stock and warrants to purchase 1,500,000 shares of common stock. Warrants give investors the right to purchase stocks for a certain price by a specified deadline.  

• The warrants in this offering had a per-share exercise price of $5.00 that would expire in years.  
• The common stock debuted at $4.00 per share.  

As of April 11, 2024, shares of Northwest Biotherapeutics sell for $0.51.  

About Northwest Biotherapeutics 

According to the prospectus, Northwest Biotherapeutics is a development-stage biotechnology company focused on developing immunotherapy products to treat cancers. One of its products, DCVax, had entered Phase III clinical trials for brain and prostate cancers.  

Risk Factors Associated with Northwest Biotherapeutics  

The following risks are identified in the prospectus. This is not a complete list – see page 10 of the prospectus for a more detailed list.  

Raising Funds  

Northwest  Biotherapeutics needs to raise more money for clinical trials. Those funds might not be available, or not available on attractive terms.  

The company’s auditors have issued a “going concern” audit opinion, meaning they are not sure if the business will be able to continue.  

Novel Technology  

The prospectus states: “As a development stage company with a novel technology and unproven business strategy, our limited history of operations makes an evaluation of our business and prospectus difficult.” 

Side Effects 

As clinical trials continue, unexpected side effects or other safety risks could derail product development.  

Losses and Profitability 

The prospectus discloses that the business continues to incur substantial losses and may never achieve profitability.  

Third-Party Manufacturers  

Northwest Biopharmaceuticals disclosed that it relied on third-party manufacturers. As a result, the factor may be at risk for capacity limitations and/or supply disruptions.  

Scaling Up  

The necessary specialized facilities, equipment, and personnel may not be available for obtainable for the scale-up of manufacturing of product candidates.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.