Northwest Bio implements balance sheet clean-up

Northwest Biotherapeutics (OTCBB:NWBO) has implemented a major clean-up of its balance sheet, removing $31.5 million of liabilities through settlement, retirement and conversion, reducing its liabilities from $48 million at the end of the third quarter to $16.5 million.

Only about $2.3 million of the remaining $16.5 million relates to trade payables, which the company is maintaining on a current basis.

The company said more than $3 million of liabilities consists of investment debt held by related parties, and the remaining $11 million consists of investment debt held by angel investors and institutions, most of whom have been long-term supporters of the company.  These investors have consistently converted their debt to equity and/or extended their maturity dates, and it is anticipated that most of this remaining investor debt will convert to equity in due course.

“We are very pleased to be able to make such a major reduction in liabilities as part of our ongoing program of strengthening of our balance sheet,” CEO Linda Powers said in a statement.

With $2.3 million of accounts payable, maintained on a current basis and related to the company’s accelerating 240-patient clinical trial in its lead program, and with the remaining debt in the hands of mostly long-term supporters of the company, “we are making great progress in reaching a stronger and healthier financial position,” she said.

“Combined with the strength of our science and our clinical trials, our programs in both the U.S. and Europe … and our growing outreach, this major balance sheet clean-up helps to position us to move to the next market level,” she added.