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Wednesday, October 25, 2017 10:09:01 AM
I doubt, other than appropriate lot sizing, LPC holds ANY of
the shares longer than it takes to divest.
A straddle in AVXL would be a losing strategy over any 1-2 month
time frame in the last two years......perhaps you could find an exception.
Second part first. No I can’t. I don’t do options. (Also why I don’t short stocks, only a reckless investor shorts without upside protection imho)
Now to the first part:
I have learned a great deal about these LPC type financing agreements from Anavex’s filings.
Ex. “The Company previously filed a registration statement on Form S-3 (File No. 333-207600) on October 26, 2015, which was declared effective on September 6, 2016 (the “2016 Registration Statement”), which registered for sale by Lincoln Park up to 6,754,609 shares of our common stock issued or issuable under the Purchase Agreement, inclusive of 269,397 shares of common stock issued or issuable to the Selling Security Holder for no cash consideration as commitment shares.
6,633,656 shares of common stock registered under the 2016 Registration Statement have been issued to Lincoln Park and 6,475,575 have been resold by Lincoln Park as of the date of this prospectus. No commitment shares are being registered under this prospectus.”
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=12271363-953-95847&type=sect&TabIndex=2&companyid=660924&ppu=%252fdefault.aspx%253fcompanyid%253d660924
What I learned.
Apparently both parties know exactly what LPC is doing with their shares as they purchase them. (Because this information comes from Anavex not LPC). I didn’t know that.
Notice how they have roughly the same number of shares unsold as the original “commitment shares”? I believe that’s probably because they use those to sell on the day they are required to purchase shares. They get to purchase at the lowest price at any single point during that trading day (or lower of previous 10 days if memory serves). So why not pick a slow period during the day and create an “artificial low” for your required purchase price?
A lot of people assume this means LPC type companies want to decrease the share price of their clients (toxic financing). I don’t believe that’s the case. Remember they want to sell those shares the next day for more than they paid so they don’t want the share price to decline. They would love to see it increase on that day.
If I understand the model correctly, since they get commitment shares at the beginning of the contract, technically they would need very little of their own capital for these agreements.
All imho only of course.
Recent AVXL News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:30:10 AM
- Anavex Life Sciences Announces Expansion of Leadership Team • GlobeNewswire Inc. • 05/22/2024 11:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 10:01:00 AM
- Anavex Life Sciences to Present at the H.C. Wainwright 2nd BioConnect Investor Conference at NASDAQ • GlobeNewswire Inc. • 05/14/2024 11:30:00 AM
- Shareholders that lost money on Anavex Life Sciences Corporation(AVXL) Urged to Join Class Action - Contact The Gross Law Firm to Learn More • PR Newswire (US) • 05/10/2024 09:45:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:35:55 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 12:00:30 PM
- Anavex Life Sciences Reports Fiscal 2024 Second Quarter Financial Results and Provides Business Update • GlobeNewswire Inc. • 05/09/2024 11:30:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Anavex Life Sciences Corporation(AVXL) Shareholders • PR Newswire (US) • 05/07/2024 09:45:00 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/06/2024 10:03:33 AM
- Anavex Life Sciences Corporation Sued for Securities Law Violations - Contact The Gross Law Firm Before May 13, 2024 to Discuss Your Rights - AVXL • PR Newswire (US) • 05/03/2024 09:45:00 AM
- Anavex Life Sciences to Announce Fiscal 2024 Second Quarter Financial Results on Thursday, May 9th, 2024 • GlobeNewswire Inc. • 05/02/2024 11:30:00 AM
- May 13, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against AVXL • PR Newswire (US) • 04/26/2024 09:45:00 AM
- Contact The Gross Law Firm by May 13, 2024 Deadline to Join Class Action Against Anavex Life Sciences Corporation(AVXL) • PR Newswire (US) • 04/19/2024 09:45:00 AM
- The Gross Law Firm Reminds Shareholders of a Lead Plaintiff Deadline of May 13, 2024 in Anavex Life Sciences Lawsuit - AVXL • PR Newswire (US) • 04/16/2024 09:45:00 AM
- Class Action Filed Against Anavex Life Sciences Corporation (AVXL) - May 13, 2024 Deadline to Join - Contact The Gross Law Firm • PR Newswire (US) • 04/12/2024 09:45:00 AM
- Anavex Life Sciences to Present at the Noble Capital Markets Virtual Healthcare Equity Conference • GlobeNewswire Inc. • 04/11/2024 11:30:00 AM
- Class Action Filed Against Anavex Life Sciences Corporation (AVXL) - May 13, 2024 Deadline to Join - Contact The Gross Law Firm • PR Newswire (US) • 04/09/2024 09:45:00 AM
- Anavex Life Sciences Corporation Class Action: The Gross Law Firm Reminds Anavex Life Sciences Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 13, 2024 - AVXL • PR Newswire (US) • 04/05/2024 09:45:00 AM
- Shareholders that lost money on Anavex Life Sciences Corporation(AVXL) should contact The Gross Law Firm about pending Class Action - AVXL • PR Newswire (US) • 04/02/2024 09:45:00 AM
- Lost Money on Anavex Life Sciences Corporation(AVXL)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm • PR Newswire (US) • 03/29/2024 09:45:00 AM
- Investors who lost money on Anavex Life Sciences Corporation(AVXL) should contact The Gross Law Firm about pending Class Action - AVXL • PR Newswire (US) • 03/26/2024 09:45:00 AM
- Anavex Life Sciences to Present at the 23rd Annual Needham Virtual Healthcare Conference • GlobeNewswire Inc. • 03/25/2024 11:30:00 AM
- The Gross Law Firm Notifies Anavex Life Sciences Corporation Investors of a Class Action Lawsuit and Upcoming Deadline • PR Newswire (US) • 03/22/2024 09:45:00 AM
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