Anavex Life Sciences Corp (AVXL)

[MinnieM]

It's possible, but, none of us have the information to say what actually caused today's drop in price.

Following are a few key excerpts from the Lincoln Park purchase agreement that may help you understand it better. I'll include the pages they are taken from so that you can read more for a fuller understanding. Hope it helps.

Purchase agreement: https://www.sec.gov/Archives/edgar/data/1314052/000161577416006875/s102059_exhibit10-1.htm

Page 4
(w) “Purchase Price” means, with respect to any Regular Purchase made pursuant to Section 2(a) hereof, the lower of: (i) the lowest Sale Price on the applicable Purchase Date and (ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (in each case, to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

(x) “Regular Purchase Notice” means, with respect to any Regular Purchase pursuant to Section 2(a) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable Purchase Price as specified by the Company therein on the Purchase Date.

Page 5 [this is where you should read the full page]

(a)

the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Regular Purchase Notice from time to time, to purchase up to Fifty Thousand (50,000) Purchase Shares (each such purchase a “Regular Purchase”), at the Purchase Price on the Purchase Date;

(a)

provided, further, however, that the Investor’s committed obligation under any single Regular Purchase shall not exceed Two Million Dollars ($2,000,000).

(b)

The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice for a Regular Purchase and the Closing Sale Price is not below $3.00

The Accelerated Purchase is what has the $3.00 floor, not the Regular Purchases.








In Reply to 'iandy'
Karin - Do you think today's drop is related to the financing set up?

I've been reading the details but can't make head or tails out of it.
How much are they looking to raise? Are the sales based on volume traded?
Is it even possible to try and come up with a target price for new shares?
I'm trying to come up with a rough valuation assuming dilution.

Regards,
Andy