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Date: Wednesday 20 Aug 2008

LONDON (ShareCast) - Northwest Biotherapeutics has less than six weeks to raise extra cash to keep the day to day business in tact despite just agreeing a $1m loan from Toucan Partners.

The biotech outfit watched its shares crumble as investors panicked at the firm’s admission it had just $1.1m of cash on hand, including the loan.

“The company estimates that its available cash is sufficient to support its day to day operations through to the end of September 2008,” it said.

“It therefore needs to raise significant additional capital to fund its clinical trials and other operating activities and to repay indebtedness.”

Northwest is in “late stage discussions with several parties” to try and get the additional funds by the end of the year, but warned shareholders that its failure to do so “will have a material adverse effect on the company financial position and operations”.

The group, focused on developing immunotherapy products that treat cancers, narrowed its net loss for the second quarter period ended 30 June to $6.05m from $7.96m a year ago. Interest expenses closed to $69,000 from $4.73m in 2007, but operating expenses rose to $6m from $3.91m.

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