Yes, that answers Turner’s question.
With this agreement, Missling is not under any “pressure” as he put it to, for example: (1) to make a deal with big pharma, (2) to worry about whether the pandemic may get worse and cause unexpected problems, (3) to not be able to raise capital if economic conditions worsen for any reason and lead to some sort of liquidity crises, or (4) to worry about market conditions that affect a clinical stage pharmaceutical company.
The agreement gives Anavex a great deal of time and flexibility without having to worry about market conditions. When someone says wait and sell for a higher price, I ask what higher price? It is not that simple to do - sell at that higher price. For example, INO (developing among other things a Covid vaccine) was at a high of $33.39 Friday a week ago. Wednesday of this week it reached a low of $18.35 after Pfizer’s announcement of some slight degree of success in its limited vaccine trial. Biogen or another big pharma could announce just about anything regarding AD, and everyone would fall all over themselves to buy that big pharma stock leaving Anavex in the dust. If you remember, we have seen that happen. My point is that market conditions - especially for clinical stage pharmaceutical companies in normal conditions are subject to wide fluctuations. We are not experiencing normal times with the pandemic, this presidential election (remember the remarks about drug prices in the last election?), protests and the like we are experiencing. Even if Anavex shoots up to $14 per share Monday morning on positive news, no one knows where the price may be 3 days later. Anavex’s stock shot up to over $14 per share Friday, November 6, 2015, and Friday, November 20, 2015, it reached a low of $3.16 per share.
While on the subject of market conditions, I am not so sure that we are past the stage of experiencing lock limit down days in the markets like we saw this past March. In times of a crises, with lock limit down days, investors are sometimes forced to sell everything. Anavex’s desire should be to keep the company on track without any interruptions from unexpected shocks that may hit the markets. The LPC agreement helps to assure that will be the case.
