Anavex Life Sciences Corp (AVXL)

[Biostockclub]

Appears to point to a licensing deal rather than buyout. The licensing entity officers will want shares in Anavex for reaching the milestone of putting the deal to bed. It will profit both companies handsomely and the officers will want their reward. Not to mention, they know what they are licensing and the potential it has for profit. They, likely, already own shares in their company but can see that Anavex is going to partner up on other indications as well, so this is a personal piece of pie going forward.

If straight buyout, they would own the company and simply apportion themselves shares or bonuses upon completion of milestones.

Yes, this is where the preferred shares would have been, well, preferred. So, now, officers can get shares at the low price as part of the deal - not buy, be granted as options, which will increase in value instantly upon consummation. Not a bad structure when you consider clinical testing has not been done yet, so pre-fruits of their labor.

Imo