Yes, what you say makes perfect sense, and you are on the right track. The Cantor deal certainly provides Anavex the flexibility to raise capital “to fully implement our (Anavex’s) business, operating and development plans....”
In support of what we are surmising, I am cutting and pasting pertinent parts about why the Cantor agreement was done:
"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.....
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....."
"Another source of funding" refers to funding through Cantor. Therefore, there is language in the prospectus supplement disclosed Friday about the Cantor transaction that supports such a thesis.
In any event, whether the 9,000,000 shares on Tuesday was related to Cantor or not, Anavex is in a much better position to raise capital in my opinion; however, others should study both the 2016 Lincoln arrangement and the Cantor accord, which supplements the Lincoln funding transaction. Everyone may then form their own opinions and conclusions, but my view of this is that Anavex is in a favorable position to fund its operations, to conduct its planned clinical trials and to advance the commercialization of any drug that may be approved within the next 3 years. I do not mean to say that a partnership(s) will not be needed, but I do believe Anavex is in a stronger position to either go it along or to negotiate a very favorable partnership (s) should that be necessary.
