Anavex Life Sciences Corp (AVXL)

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Many large blocks are agreed upon between two or more large investments firms, rather than on the open market. Such an agreement might be structured as: We'll buy $25M in AVXL from your firm at the end of trading, for a price per share based on the end of day closing price. There are many variations on this theme.

In the case of Anavex, we have a big funding/financing agreement in place, and Anavex can tell the funding company something like: We want to exercise our option to have you buy 1M shares at the end of the day at the end of day closing price. In this type of deal, Avavex sells previously authorized new shares into the marketplace.