Anavex Life Sciences Corp (AVXL)

[Investor2014]

We do know that an S3 EFFECT was files with SEC 12th June 2017.

With disclaimers for me being in error it could mean as follows:

Since then there have been 55 business days, where every other day LPC can be asked to purchase $50,000 worth of shares from Anavex.

from time to time over a 36-month period and at our sole discretion, but no more frequently than every other business day, direct Lincoln Park to purchase 50,000 shares of our common stock on any such business day, which amounts may be increased under certain circumstances, provided that in no event shall Lincoln Park purchase more than $2,000,000 worth of our common stock on any single business day, plus an additional “accelerated amount” under certain circumstances, at a purchase price per share based on the market price of our common stock immediately preceding the time of sale as computed under the Purchase Agreement without any fixed discount. The amount of shares of our common stock that we direct Lincoln Park to purchase depends on the closing price of our common stock.

Given the stock price over the last 55 days of trading, we can largely ignore all of this:

on any day that the closing sale price of our common stock is not below $9.00 the purchase amount may be increased, at our sole discretion, to up to 100,000 shares of our common stock per purchase; and on any day that the closing sale price of our common stock is not below $11.00 the purchase amount may be increased, at our sole discretion, to up to 125,000 shares of our common stock per purchase and on any day that the closing sale price of our common stock is not below $13.00 the purchase amount may be increased, at our sole discretion, to up to 150,000 shares of our common stock per purchase. Such purchases are hereinafter referred to as “Regular Purchases”. In no event shall Lincoln Park purchase more than $2,000,000 worth of our common stock pursuant to a Regular Purchase on any single business day. The purchase price per share for each such Regular Purchase will be equal to the lower of:

The average closing stock price over the last 55 trading days is $5.0431.

Roughly that would mean that $50,000/$5.0431 shares could have been issued to LPC each of 27 days, which gives 267,692 shares, or about $1,350,000 in equity release in the Anavex coffers. There would also have been a negligible bit of LPC incentive shares issued.

The trading volume in those 55 days was 13,540,838 shares. Assuming that LPC also resold their shares in the market, one would hardly notice the bit that may be due to LPC 'dilution'.

I hope this makes some sense, or?