NW Bio Announces Deal Worth $47M

Northwest Biotherapeutics ("NW Bio") has entered into agreements with a large multi-national corporation for a package transaction involving the Company's property located near Cambridge, UK.  

Under the agreements, NW Bio will sell most of its UK property to the multi-national corporation. The Company will receive £37.5 million (approximately $47.3 million) cash payment at closing, and will retain ownership of 17 acres of the property, which are excluded from the sale and which the Company believes will have substantial additional value in the future. NW Bio will also retain a lease-back of the approximately 87,000 square foot manufacturing facility which the Company has been developing on the site, along with substantial adjacent areas, for up to 40 years on favorable terms.

The cash purchase price to be paid for the sale of most of the UK property will provide approximately $47.3 million of non-dilutive gross proceeds. Transaction expenses for broker and legal fees are expected to total about £1.3 million. 
 

NW Bio acquired the property for approximately £18 million. Subsequent investments into the property have been focused on the 87,000 square foot manufacturing facility, including refurbishments, structural improvements, extension of an additional level of interior space, and buildout of initial clean-room manufacturing suites.

The lease-back of the manufacturing facility will initially be for 20 years, with a renewal for a second 20 years on the same terms at the Company's option. The rent is determined by valuing the entire manufacturing facility as a warehouse.  No rent is payable for the first year. Starting in year two, the rent is approximately £5.76 per square foot per year, with limited adjustments once every five years.  The lease includes substantial adjacent areas, including for surface parking of 600 vehicles and for equipment, plant and facilities that support or are related to operations in the manufacturing facility.  The Company believes that, with internal buildout of further manufacturing suites inside this facility, it will potentially be capable of supporting production of DCVax® products for up to 10,000 patients per year.  

"Now that the data from our Phase 3 clinical trial of DCVax®-L have further matured and provided a further encouraging picture of patient survival, and we are ready to move forward with the months of work related to completion of the trial, we are very pleased to have a new war chest of funding for this work," commented Linda Powers, chief executive officer of NW Bio. "We are also looking forward to proceeding with further DCVax®-Direct trials. We are especially pleased to obtain this funding on a non-dilutive basis, and to seamlessly continue our activities with the UK manufacturing facility under the favorable lease-back."  

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