Anavex Life Sciences Corp (AVXL)

[Investor2014]

The cashless transaction does make sense and as I said in a later post about all this nonsense, it is also the way this is ordinarily done with public company incentive stock and stock options. Done exactly the same at the large public company I worked for.

The point is there was no risk for Missling to take his incentive option grant in a cashless and risk free FOC transaction for him. Investors are ultimately paying for those incentives in a company like Anavex with no revenue. Nor is there any WGT or opposite signal in that transaction - nothing can be read into it other than Missling could get very rich at some point and hopefully so can we as investors - only time will tell. Had Missling paid for out of own pocket to own ALL 500,000 shares granted, then that would be a signal of some confidence.

In a private company, as I also explained, there is no market to provide a cashless transaction. When i exercised my incentive options on leaving a private company it cost me out of pocket money, although not a lot given the internal accounting share evaluation. Still waiting for the return to come in now for almost 30 years - as I recall on an investment of some $6,000.