Yes. Cantor the agreement says “ ... we may offer and sell shares of our common stock having an aggregate offering price of up to $50,000,000 from time to time through Cantor Fitzgerald, acting as our sales agent.
This is a prospectus supplement to the prospectus issued in September 2016. Study the September 2016 prospectus as well as this supplement. This supplement also covers the Lincoln Park deal.
Today’s supplement prospectus says:
"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."
I could be wrong, but I see this as giving Anavex flexibility to raise capital for what Anavex estimates will be needed for operating capital, to conduct clinical trials, to ramp up and come to market over the next three years. Correct me if I am wrong, but I do not see where it is necessarily any more or much more dilutive than what has been previously announced. I do see it as curing problems that Anavex saw that existed with relying on Lincoln Park along. However, please pour over all that has been disclosed by Anavex, do your own DD, and draw your own conclusions. If you see that what has been announced today as negative, sell your shares if you own shares or do not purchase any shares if you do not own shares. However, I will hold my position,and I may purchase additional shares as I have done now over the course of the last 4 years.
