Anavex Life Sciences Corp (AVXL)

[BAR123]

Our investment group has a contact within the company who communicates regularly with the Investor Relations team. She keeps us updated on all correspondence and calls she has with the IR team. There are a number of actions the company could take to curb short-selling, protect the stock price, and make raising funds at a higher valuation more achievable. We’ve seen steady but slow growth from institutional investors, and yes, the shorts continue to grow as well. I’ve heard repeatedly that short covering will be significant once the Peer Review is out, or when the OLE data is released, or when the EMA accepts our application, or when the FDA allows us to apply for approval—but remember, they haven’t even met with the FDA yet. When was the data released? Quite a while ago.

Our group has suggested that the company executives make a small purchase of shares on the open market—5,000 to 10,000 shares each. This would send a clear message. We understand that using corporate funds for a share buyback may not be the best option, but consider this: a $2 million buyback at $8 per share would buy back 250,000 shares. That, too, would send a message.

Is Missling the issue? Most would agree that he hasn’t met his commitments over the years, and this remains an ongoing issue. Did he mishandle the Rett trial? Probably. Did he mishandle the release of the Alzheimer's data? Yes. Does he have Wall Street’s support? It certainly doesn’t look that way.

We’re not necessarily suggesting he leave the company, but perhaps it’s time to bring someone in who has strong connections on Wall Street to take on the role of President while keeping him as CEO. Yes, we are a small company, but if he is the reason Wall Street isn’t fully backing us, this needs to be addressed. If we truly believe our drug has the potential to become the largest drug in history, we should be able to attract a strong president.

Apologies for another rant so soon, but there are clear steps that can be taken to protect shareholders and enhance the company’s prospects from both a management and financial perspective.