Anavex Life Sciences Corp (AVXL)

[Gator328]

Do you really think that's the most likely explanation, Leo? That Dr. Missling is holding onto shares of what many believe to be a fraudulent company because he doesn't want to see his paper profits shrink? I guess it's possible but I wouldn't say that's as likely an explanation as he believes in the company and believes those shares will have a future value greater than the lump cash invested elsewhere would earn. In other words, he chose to reinvest his cash into his company. I might take 50:1 odds on your suggestion, that he's vain enough to rather be paper rich and cash poor against the advice of every financial planner in the world.

Ambiguous usually ends up in court, and ambiguous usually loses. It doesn't make sense why he'd like when he can simply say, "the drug didn't pan out, we are going to pivot to..." and use the $100 million in cash to start over. People lie when they don't have options, when their backs are against the wall. Blarcamesine could be a complete dud and the company still has a second life (this is rare for most startup biotechs, by the way). I'd imagine if Dr. Missling were trying to bleed the company he wouldn't want to risk exposing the nest egg to lawsuits.