Northwest Biotherapeutics enters $4.9 million convertible note agreement
Northwest Biotherapeutics enters $4.9 million convertible note agreement
Northwest Biotherapeutics (OTCQB:NWBO) announced it has entered into a $4.9 million convertible promissory note financing with YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP. The agreement was executed on July 29, 2026, according to a statement in a recent SEC filing. The financing comes as the company faces significant liquidity challenges, with a current ratio of just 0.07 and levered free cash flow of negative $49.4 million over the last twelve months as of Q1 2026. According to InvestingPro analysis, which provides comprehensive financial health scores and expert insights, the company is quickly burning through cash—one of 7 key ProTips available to subscribers.
The convertible note has a term of 12 months, with no payments required by the company until maturity. The note carries a five percent original issue discount and does not bear interest. Repayment of the outstanding amount is due at maturity, and the note contains standard default provisions. During the 12-month period, the note is convertible at the holder’s option at a small discount to the prevailing market price.
Proceeds from the financing are intended for general corporate purposes, including support for the company’s lead product and in-licensed portfolios.
In addition to the convertible note, Northwest Biotherapeutics and Yorkville entered into a standby equity subscription agreement. Under this arrangement, after the note is repaid or converted, Northwest Biotherapeutics may require Yorkville to subscribe for up to $50 million of common shares at a small discount to the market price at any time during a 24-month term. The company has no obligation to utilize this facility and may cancel it after the note is repaid or converted.
The filing states that Northwest Biotherapeutics currently has no plans to draw from the standby facility but intends to keep it available for potential future funding needs. Trading at $0.16 per share with a market cap of $269 million, the stock has declined nearly 40% over the past six months. InvestingPro’s Fair Value analysis suggests the stock may be slightly undervalued at current levels—investors can explore more opportunities on the Most Undervalued stocks list.
As part of the transaction, Yorkville also received a warrant to purchase up to $2 million of Northwest Biotherapeutics shares at $0.205 per share.
This summary is based on a press release statement included in the company’s SEC filing.
In other recent news, Northwest Biotherapeutics has announced that its Chief Technical Officer, Dr. Marnix Bosch, will be presenting scientific findings at the 2026 Annual Meeting of the British Neuro-Oncology Society. The presentation, titled "DCVax-L Associated Survival Extension Assessed Through Propensity Score Matching Analyses," will focus on the association between the DCVax-L treatment and patient survival. This presentation is set to take place at 10:00 a.m. GMT. The company released a statement indicating that the findings utilize propensity score matching methodologies. These developments highlight Northwest Biotherapeutics’ ongoing research efforts. Investors may want to keep an eye on the outcomes of this presentation for potential impacts on the company’s future research directions. This announcement is part of the company’s recent updates.