Anavex Life Sciences Corp (AVXL)

[F1ash]

Here is possibly the biggest advantage of the Cantor agreement vs. the LPC agreement imho.

The max capital raise that could have happened on any one day was 100k shares on an accelerated purchase under the LPC agreement.

So, on the recent trading day where 9 million shares were traded the max raise would have been $400k at $4 a share.

But with the Cantor ATM Anavex could have possibly raised ~$7 million on that day alone imho.

“Limitations on Offering Size . Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement, the Maximum Amount and (B) the amount authorized from time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee. Further, under no circumstances shall the Company cause or permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement to exceed the Maximum Amount.”

http://secfilings.nasdaq.com/filingFrameset.asp?FilingID=12851999&RcvdDate=7/6/2018&CoName=ANAVEX%20LIFE%20SCIENCES%20CORP.&FormType=8-K&View=html

So as I read it, for all practical purposes the daily limit is eliminated.

Practically speaking, here is the new likely daily offering size limit:




“Offering size – Since the offering size is limited by liquidity in the stock, ATMs are less useful to issuers seeking to raise a large amount of capital in a single tranche. You can typically only sell 15 to 30 percent of the average daily trading volume.

https://westwickepartners.com/2013/10/is-atm-financing-the-right-option-what-you-need-to-know/


Edited:(So theoretical speaking a large raise “could” be done if a day like that happened again.)
9 million shares traded X ~20% would be 1.8 million shares x $4 a share would be $7.2 million.

Folks are usually ok with dilution once the money is in the bank, it’s the “expected” dilution they hate imho.