Investor, I think (although I need to study this more as well) that what you say may be correct when you say "my thought is that Anavex is replacing LPC with Cantor for the second traunch of $50M and thus this prospectus is for $100M total incorporating the LPC agreement and the sales of stock so far under that agreement. "
This is some of the wording from today's prospectus:
"Our ability to sell shares to Lincoln Park and obtain funds under the Purchase Agreement is limited by the terms and conditions in the Purchase Agreement, including restrictions on when we may sell shares to Lincoln Park, restrictions on the amounts we may sell to Lincoln Park at any one time, and a limitation on our ability to sell shares to Lincoln Park to the extent that it would cause Lincoln Park to beneficially own more than 9.99% of our outstanding Common Stock. Therefore, we might not have access to the full amount available to us under the Purchase Agreement. In addition, any amounts we sell under the PurchaseAgreement may not satisfy all of our funding needs, even if we are able and choose to sell all $50,000,000 of our Common Stock under the Purchase Agreement.
We elected to enter into the Purchase Agreement with Lincoln Park as we expect that amount of capital over the next three years will be required for us to fully implement our business, operating and development plans. The extent we rely on Lincoln Park as a source of funding will depend on a number of factors including, the prevailing market price of our Common Stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from Lincoln Park were to prove unavailable or prohibitively dilutive, we will need to secure another source of funding in order to satisfy our working capital needs. Even if we sell all $50,000,000 of shares of our Common Stock under the Purchase Agreement, we may still need additional capital to fully implement our business, operating and development plans. Should the financing we require to sustain our working capital needs be unavailable or prohibitively expensive when we require it, the consequences could be a material adverse effect on our business, operating results, financial condition and prospects."
The paragraph immediately above refers to "development plans". I am curious about what that means. Could it mean that the company is anticipating funds needed to bring the drug to market.
