Anavex Life Sciences Corp (AVXL)

[kc2code]

maybe I'm missing something, but here's how it looks to me.

- Anavex already has an LP association from earlier deals, so reputational risk is already built in.
- The deal cost about 2 million in printed stock - i.e. it's cheap
- The deal gives Anavex negotiating leverage and possible funding for phase 2's for epilepsy, parkinson's etc. etc. These trials offer potentially huge negotiating leverage as well
- Anavex dictates the execution and amount of any purchases

and most importantly
- Anavex can cancel this agreement at any time for any reason.

So when they get into talks with larger institutions about financing/partnerships, they have this in their back pocket. But also the other side knows that if a deal is reached, obviously part of that would be Anavex terminating the LP agreement.

Don't really see any downside if this is managed well.