Anavex Life Sciences Corp (AVXL)

[kld2]

Oh frrol, I think you've been around the investment block one too many times not to at least raise an eyebrow at LPC (independent of the details of the deal, just the fact that ANAVEX is working with LPC tells you how Anavex cannot work with anybody else: people go to a loan shark when the bank won't let them through the door). Several people I respect, including Sheff and AF, have called it toxic; and if you do just a minimal amount of research, you will see how disrespected it is by the Street.

I mean, let's be honest. Do some research. See the companies LPC has worked with. And then ask yourself: is that the kind of company your company would like to keep?

I think AF's GALE column I've provided the link to sums it up pretty well, including the part about companies not be able to raise due to lack of institutional interest (all companies would like to negotiate on strength rather than weakness, choosing the best terms and the most reputable investment banks, which, in turn, represent them to potential institutional buyers, who buy, and, by buying, act as a ballast as the drug ship sails from trial to trial--in a stormy market--isn't that how it works, ideally, with developmental biotechs? Correct me if I'm wrong). I suspect LPC is a financing ballast of last resort.

I'm not saying Anavex will even use LPC. But it makes me chuckle, nonetheless, that almost nobody on this board questions where the money is going to come from to run two large Ph2b trials. It's a huge question-perhaps the most important question of all. Yet hope would rather be dumb than ask for answers.

http://www.thestreet.com/story/12963541/1/galena-shunned-by-wall-street-forced-to-seek-pricey-vulture-financing.html