Anavex Life Sciences Corp (AVXL)

[Gator328]

My guiding philosophies are: plan for the best but prepare for the worst, and believe none of what you hear and half of what you see. It's not much fun living as a skeptic but when it comes to investing it's served me well.

I'd like to believe that MIssling isn't hoping for the best but planning for the worst, but I cannot discount that possibility. He's raising money now while there's still demand for AVXL shares.

As for the A/S being extended, 100M was an arbitrary number. But if Missling plans to go at this alone it will cost way more than $250M to properly bring this drug to market. This shelf offering wasn't a rushed decision either. It's been in the works for a while, so one has to wonder why Missling represented the company's cash position as sufficient for the next two years if his plan all along was to raise more funds?

A simple, "We have enough cash for now but as you all know we will need a lot more going forward" would have been appropriate. But Missling never made this representation at the shareholder meeting. In fact, he insinuated quite the opposite -- that the company's cash reserves would take it through trials and then partnership was the next step to securing funds.