Anavex Life Sciences Corp (AVXL)

[skitahoe]

I hate to say it, but with just a little success Institutions will own the overwhelming majority of AVXL. Even if the BOD recommends against a buyout offer, they must bring it to a vote. If the Institutions want a big profit and to get out, that's how it goes.

I would hope the company can remain independent long enough to prove its products work in a number of disease and gain approval in a number of countries, that should give us at least a double digit billion dollar market cap. A buyout offer that's roughly double that market cap would be something that would be hard to refuse, even if they weren't soliciting it.

I don't know if the Institutions pushed IMGN to shop around for a buyer, but many of us individual investors didn't want to see it happen, but clearly the Institutions did, the vote wasn't even close. Prior to the buyout announcement the company said they were looking for regional partners for their newly approved drug, they may have been, but clearly they were shopping the company. I hope the same doesn't happen here, but at the right price, it will either be sold, or an equity partner will come in, and they'll have a great deal of control.

A BP that took say a 20 to 30% equity position would not only have one or more seat on the BOD, they'd have allies among the Institutions that own a stake in the company. If the company wishes to oppose the direction the BP wants them to take all they have to do is demand a shareholders vote, they will be in control. The fact is, it won't happen because the company realizes it and they'll work out any differences.

Gary