Anavex Life Sciences Corp (AVXL)

[wildcard235]

"...raising cash is something that worries me as well. How can the shelf offering not worry shareholders?"

The alternative is running out of cash, as Anavex did under Dr. Kergrohen. Anavex has no revenue, so until we reach FDA approval and marketing, all operations must be funded by raising capital. Raising additional capital is necessarily dilutive, but with this $150M structure (8K & S3), Missling can minimize dilution by raising only what is needed, when it is needed, and the higher the share price goes in the meantime, the less dilution there will be to raise the same amount of capital. Unless someone wants to give Anavex a $150M grant, or we give up future revenue in a partnership, this is the ideal method of raising the money necessary to get us through the next trial and to FDA approval. As others have pointed out, having this line of credit gives Missling a stronger negotiating position in partnership talks.