On March 26, 2020, Aracaris Capital Limited (the "Borrower"), a U.K. subsidiary of Northwest Biotherapeutics, Inc. (the "Company"), reported that it has entered into a Loan Agreement (the "Loan Agreement") with Cambridge & Peterborough Combined Authority (the "Lender") for a loan of £1.35 million (approximately $1.7 million) (the "Loan") (Filing, 8-K, Northwest Biotherapeutics, MAR 26, 2020, View Source [SID1234556069]). The Lender provides funding for selected economic development projects in the Cambridge region through a competitive selection process
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The Loan will be used for further buildout of the initial phase of the advanced manufacturing facility in Sawston, U.K. (the "Project"). The Company will provide a comparable amount of funding as well. The Project was selected for funding through the Lender’s competitive process. The Sawston facility will provide greater production capacity for DCVax products than the manufacturing facility in London where the Company’s manufacturing has been taking place to date.
Under the Loan Agreement, there will be no repayments during the first year of the Loan term, although interest will accrue. Following the first anniversary, repayment of the Loan principal and interest will take place over 4 years, for a total term of 5 years. The interest rate on the Loan is 6.25% per annum.
Also as of March 26, 2020, the Borrower entered into a Security Agreement with the Lender granting a security interest in the Company’s 17-acre property in Sawston, U.K. to secure the Loan. No other tangible or intangible assets of the Company or its subsidiaries are subject to any security interest. The security interest on the 17-acre property will be released upon completion of repayment.