Anavex Life Sciences Corp (AVXL)

[boi568]

You fundamentally misunderstand how this works.

The stock will go up to a market capitalization number that reflects whatever the good news happens to be. So if that market cap is $7B, for example, and there are 70M shares, the share price will be $100 -- because 70M times $100 is $7B. But if there are so many options granted that there are 100M shares outstanding, then you divide $7B by 100M shares -- i.e., only $70 per share. And you, with your fixed number of shares, will have 30% less money in AVXL because of the increased share count resulting from the options.

Options are necessary in our situation. We are only discussing a matter of degree.