Good summary. To be honest I don't care about the share price because I'm done trying to trade any shares. I've got my core position and now it's approaching time for everyone to show their hand and see who the winners are. I don't know how it will play out but I know the stock will be nowhere near today's share price two years from now, one way or the other.
I just think it's a prudent investment decision. That cash is earning maybe 5% interest sitting there, and if Dr. Missling believes that Blarcamesine is the real deal the cash can earn a lot more than 5% if it's re-invested in the company.
I'd love to see Dr. Missling's bargaining position (if this gets approved) be one where he can dictate the terms of a partnership. If they don't give him an offer he deems acceptable, simply re-issue the shares Anavex purchased for $5-$7 for 10-20x that and use the money to go at manufacturing and distribution alone.
Using even $60 million in cash at say $6/share if it drops that low gives Anavex 10 million shares it can sell later. If Blarcamesine is a blockbuster and shares end up trading for $100, those 10 million shares are now worth $1B which is more than enough to purchase a manufacturing facility, hire a sales team, and still have plenty left over to develop the rest of the pipeline.
When Warren Buffett feels Berkshire is undervalued and he can't find other good investments, he buys back his stock. It seems to be working for him pretty well.
