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Reduce respiratory inflammation before it progresses far enough to
cause hospitalization. It makes sense.
Prudence is often the better part of valor. Better to top off the piggy bank before trial results, so that if the trial does fail, the impact will be cushioned and a market cap floor is maintained by “cash on hand”.
If the trial is indeed successful then the extra dilution is inconsequential.
Is within the last year “recently” ?
As of July 2, 2019, we had 51,661,413 shares of Common Stock outstanding.
The denominator is based on 60,082,291 shares outstanding as of June 30, 2020.
https://www.sec.gov/Archives/edgar/data/1314052/000173112220000711/e2008_424b5.htm
Pre-revenue biotechs burn cash ... it’s what they do because they cannot sell their drug until they prove it’s safe and actually works.
I personally think Anavex’s dilution percentage is about what one should have expected. Some biotechs keep diluting and never actually progress toward drug approval. The seemingly endlessly extended Phase 2a open label Alzheimer’s trial had me suspecting that might be the case with Anavex so I was very glad to see the blinded PDD and now the Rett trials because investors will soon have a better idea if A2-73 actually has a shot at being approved to sell.
Lol yep.
No, it looked like new language to me, but I should have searched the older filings to check. Thanks
Does this part look new?
“... , and upon the execution of the Amendment, Lincoln Park became irrevocably committed to purchase from us up to $24,875,198 of shares of our common stock, subject to certain limitations described below from the date of the Amendment.”
I’m just trying to figure out the motivation for changing an agreement that seemed fine. I doubt it was just random.
This looks new to me!
“On June 7, 2019, we entered into a purchase agreement (the “Original Purchase Agreement”) and a Registration Rights Agreement (the “RRA”) with Lincoln Park. Pursuant to the terms of the Original Purchase Agreement, Lincoln Park agreed to purchase from us up to $50 million of shares of our common stock. On July 1, 2020, we amended the Original Purchase Agreement pursuant to the First Amendment to Purchase Agreement (the “Amendment”, and the Original Purchase Agreement, as amended, the “Amended Purchase Agreement”), and upon the execution of the Amendment, Lincoln Park became irrevocably committed to purchase from us up to $24,875,198 of shares
of our common stock, subject to certain limitations described below from the date of the Amendment.”
Old:
Additionally, we will only be able to sell or issue to Lincoln Park 10,076,680 shares in total, which is equal to 19.99% of the shares of common stock outstanding on the date of the Purchase Agreement unless we obtain shareholder approval or the average price of such sales exceeds the price of our common stock on June 7, 2019 as determined under NASDAQ rules.
The number of shares of common stock shown above to be outstanding after this offering is based on 58,664,946 shares of common stock outstanding as of April 27, 2020 and excludes the following:
New
Additionally, we will only be able to sell or issue to Lincoln Park 12,016,457 shares in total under the Amended Purchase Agreement, which is equal to 19.99% of the shares of common stock outstanding on the date of the Amended Purchase Agreement unless we obtain shareholder approval or the average price of such sales exceeds the price of our common stock on June 30, 2020
The denominator is based on 60,082,291 shares outstanding as of June 30, 2020 and is inclusive of the number of shares set forth in the adjacent column which we would have issued as additional commitment shares and sold to Lincoln Park at the applicable assumed average purchase price per share.
Imho Anavex does, but LPC would never allow Anavex to let them know a damn thing, because if they did, then LPC would be trading on insider information when they resell the shares Anavex puts to them into the open market.
I just might have figured out the reasoning behind the latest LPC agreement. Please verify for yourselves.
Looks to me like there was still plenty of room on the previous agreement and the main difference in the new agreement had to do with the stock price on the day of the agreement. I believe both agreements were similar as long as the stock price remained above the price on the day of signing, the new agreement appears to allow a couple million more shares to be sold even if the stock price tanks.
It appears many are still confused by the filing. This filing does not signify any shares actually changing hand. It it simply a notification that shares are allowed to change hands in the future. I’m pretty sure the ~200k daily share limit remains in effect.
There seems to be a lot of confusion about the $4.92 price as well. That limit does not apply to the next 12,016,457 shares. If Anavex asks LPC to buy any shares beyond the 12,016,457 then one of two things must occur. The stock price must be above $4.92 or Anavex must allow shareholders to vote to allow Anavex to sell from share #12,016,458 on. Anavex did this before if I recall correctly. Right now if Anavex forces LPC to buy shares the $4.92 limit is not in effect.
“The purchase price for the shares that we may sell to Lincoln Park under the Amended Purchase Agreement will fluctuate based on the price of our common stock. Depending on market liquidity at the time, sales of such shares may cause the trading price of our common stock to fall.”
“Our ability to sell shares to Lincoln Park and obtain funds under the Amended Purchase Agreement is limited by the terms and conditions in the Amended Purchase Agreement, including restrictions on the amounts we may sell to Lincoln Park at any one time, and a limitation on our ability to sell shares to Lincoln Park to the extent that it would cause Lincoln Park to beneficially own more than 4.99% of our outstanding shares of common stock. Additionally, we will only be able to sell or issue to Lincoln Park 12,016,457 shares in total under the Amended Purchase Agreement, which is equal to 19.99% of the shares of common stock outstanding on the date of the Amended Purchase Agreement unless we obtain shareholder approval or the average price of such sales exceeds the price of our common stock on June 30, 2020 as determined under NASDAQ rules.”
https://www.sec.gov/Archives/edgar/data/1314052/000173112220000711/e2008_424b5.htm
Do yourself a favor and read what I wrote before. It will help you understand how LPC operates. LPC basically has a “revolving short position” imho. LPC is not actually short because they didn’t “borrow” the initial shares and sell those shares that didn’t belong to them, they probably utilize the “commitment” shares to perform the same function without actually being short.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147796719
Avxl tells Lincoln when to sell shares
No they don’t!!! AVXL tells LPC when to BUY shares. AVXL has no say in when or if LPC sells the shares they are forced to buy.
Yet Avxl put a floor at 4.92
No they didn’t. There are rules that limit the amount of dilution that companies are allowed unless they allow current shareholders to vote on the dilution. That’s were the $4.92 comes from.
“Our ability to sell shares to Lincoln Park and obtain funds under the Amended Purchase Agreement is limited by the terms and conditions in the Amended Purchase Agreement, including restrictions on the amounts we may sell to Lincoln Park at any one time, and a limitation on our ability to sell shares to Lincoln Park to the extent that it would cause Lincoln Park to beneficially own more than 4.99% of our outstanding shares of common stock. Additionally, we will only be able to sell or issue to Lincoln Park 12,016,457 shares in total under the Amended Purchase Agreement, which is equal to 19.99% of the shares of common stock outstanding on the date of the Amended Purchase Agreement unless we obtain shareholder approval or the average price of such sales exceeds the price of our common stock on June 30, 2020 as determined under NASDAQ rules. Therefore, we may not in the future, have access to the full amount available to us under the Amended Purchase Agreement, depending on the price of our common stock. In addition, any amounts we sell under the Amended Purchase Agreement may not satisfy all of our funding needs, even if we are able and choose to sell and issue all of our common stock currently registered.
“After giving effect to the sale of common stock pursuant to this prospectus supplement and accompanying prospectus in the aggregate amount of $24,875,198 at an assumed offering price of $4.92 per share, the last reported sale price of our common stock on the Nasdaq Capital Market on June 30, 2020,
https://www.sec.gov/Archives/edgar/data/1314052/000173112220000711/e2008_424b5.htm
Top line results will be reported very soon if they are good and not so soon if they are poor.
Oops I accidentally replied to my own post instead of your post. But he did sell millions of dollars worth of Anavex shares.
Food for thought.
It appears Anavex is benefiting from a rising biotech tide. That’s good news.
Just generally speaking about biotech stocks as they approach readouts that are not phase 3, it seems that the logical play for big money is to bid the stock up into the readout so that they can short at a higher price if the results are not definitive or spectacular. Let’s hope the results are good to great but remember, realistically there are still more trials required to confirm results. (Que the provisional approval chorus). If results are good but the stock pulls back anyway, that might not be unprecedented.
Because investors do not know the doses being used, the second primary outcome measure might be impactful.
“Cognitive Drug Research (CDR) Computerized Assessment System Continuity of Attention [ Time Frame: 14 weeks ]
Change from Baseline to End of Treatment in Continuity of Attention as measured by Cognitive Drug Research (CDR) Computerized Assessment System Continuity of Attention test
Number of participants with treatment-related adverse events as assessed by CTCAE v4.0 [ Time Frame: 14 weeks ]
Assess the safety and tolerability of ANAVEX2-73 compared to placebo
If they are using 30 and 50 mgs will they experience early dropouts like the 2a? Could that temper optimism?
I thought this was interesting about the CDR as it might relate to the Alzheimer’s/PDD results correlation.
“Test-retest reliability
For most cognitive measures test-retest reliability was good (>0.7) and statistically significant. Exceptions were Quality of Working Memory and Quality of Episodic Memory, which showed lower and more variable correlation coefficients (Tables 1 and 2).”
https://bmcneurol.biomedcentral.com/articles/10.1186/1471-2377-11-68
So you believe A2-73 caused some patients to do worse than they would have without taking A2-73? Otherwise why didn’t the overall percentage of expected improved patients increase?
Actually prediction models indicate 9-10 patients should have remained unchanged or actually improved after 3 years if A2-73 didn’t work at all.
I bolded the 3 year number.
MMSE score, improved/unchanged patients (%) 72.7 64.1 55.0 46.9 41.9 38.2 33.0
ADAS-cog (0 to 70) score, improved/unchanged patients (%) 55.3 48.8 41.8 36.7 32.9 31.1
IADL score, improved/unchanged patients (%)
49.7 34.2 24.3 18.0 14.8 13.8
https://alzres.biomedcentral.com/articles/10.1186/alzrt210/tables/2
“SA4503 demonstrates that fluvoxamine and donepezil bind to sigma-1 receptors in the healthy human brain.
In clinical studies, some sigma-1 receptor agonists, including fluvoxamine, donepezil and neurosteroids, improve cognitive impairment and clinical symptoms in neuropsychiatric diseases.”
Has always seemed strange to me that folks think Donepezil doesn’t work but think A2-73 will, when both drugs agonize the S1 receptor.
Well yes. His PI for the “blinded” ALZ trial has stated as much.
“
Stephen Macfarlane
Participants getting side effects, such as dizziness, suggest improvements from the drug, he said.
“The fact that they’re getting side effects and they were expected side effects based on what we know about the drug, does suggest that the people who are showing the improvements are on the active drug,” Professor Macfarlane said.”
https://www.australianageingagenda.com.au/executive/alzheimers-drug-trial-shows-promise/
Glad he used a different CRO for PDD.
33% of the patients in the trial were receiving placebo. Did they enroll because they were improving?
Find a different stock this one will never produce a marketable product imho.
Press Releases
Arch Raises $1.4 Million with Convertible Note Issuance and Warrant Reprice
Download PDF
Financing with long-term shareholders provides flexibility during product roll-out
FRAMINGHAM, Mass., June 05, 2020 (GLOBE NEWSWIRE) -- Arch Therapeutics, Inc. (OTCQB: ARTH) ("Arch" or the "Company"), developer of novel wound care and biosurgical devices, announces that it has raised $1.4M from long-term shareholders.
As part of the capital raising, the Company has issued a Series 1 Unsecured Convertible Note (the “Note”) to several accredited current investors for the aggregate principal amount of $550,000. The Notes accrue simple interest on unpaid principal at a rate of ten percent per year. Features of the note allow for payment of principal plus accrued interest at any time up until maturity as well as conversion into common stock under certain conditions (to “Convert”) at a price of $0.27 per share (“Conversion Price”). Noteholders may Convert at any time. The Company may Convert upon raising $5M of equity capital at the Conversion Price or greater or after the stock trades above $0.32 per share for at least 15 days on a volume weighted basis. At maturity, remaining outstanding principal and accrued interest may be either repaid or multiplied by 135% and then Converted at the Conversion Price. The Convertible Notes contain customary events of default.
The Company has also entered into an agreement (the “Agreement”) with the holders of a majority (the “Majority Holders”) of the outstanding Series D Warrants (the “Warrant”) resulting in approximately $850,000 of proceeds as a result of the full exercise of their Warrants. The Agreement provides for the reduction of the Warrant exercise price from $0.25 to $0.18 per share, and the elimination of a provision that prevents the Warrant from being exercised if the holder’s beneficial ownership would exceed 4.9% as a result. Under the terms of the Agreement, in exchange for fully exercising their remaining Warrants for approximately 4.7 million shares of common stock, the Majority Holders were issued new warrants to purchase approximately 3.55 million shares of common stock at an exercise price of $0.25 cents over a 1 year term.
Further details on the above transactions may be found in the related current report on Form 8-K that will be filed with the Securities and Exchange Commission.
Yes, it was true.
Just a note but they are apparently capsules not tablets.
Drug: High dose ANAVEX2-73
Active oral capsule
https://clinicaltrials.gov/ct2/show/NCT03774459?term=Anavex&draw=2&rank=4
I was serious. What is he gaining?