Replies to post #26539 on Anavex Life Sciences Corp (AVXL)

[BostonSportsNut]

Is it very very bad or very very very bad?

[scottsmith]

Sal -- What percent of the shares do you think avxl will actually sell to lp? I don't think many but we will see.

[stealthways]

nothing has changed, LPC did one of the last financings and it did not cause AVXL problems in the past, why should it change in the future...Also if the science is like we think your point is even more totally irrelevant..

[twiz0019]

Gee Sal, for the life of me I cannot understand why Missling didn't hire you as a consultant to work out future financing. It is "clearly" obvious you are smarter than he is in these matters and he has no idea what he's doing. PLEASE try to contact him to see if you can save him!!!!

[INTL]

Yes
Completely correct. This would have been a big % gainer today if it werent for the 8k. Foul tactics.

[kc2code]

maybe I'm missing something, but here's how it looks to me.

- Anavex already has an LP association from earlier deals, so reputational risk is already built in.
- The deal cost about 2 million in printed stock - i.e. it's cheap
- The deal gives Anavex negotiating leverage and possible funding for phase 2's for epilepsy, parkinson's etc. etc. These trials offer potentially huge negotiating leverage as well
- Anavex dictates the execution and amount of any purchases

and most importantly
- Anavex can cancel this agreement at any time for any reason.

So when they get into talks with larger institutions about financing/partnerships, they have this in their back pocket. But also the other side knows that if a deal is reached, obviously part of that would be Anavex terminating the LP agreement.

Don't really see any downside if this is managed well.

[itsthebox1]

The last potential deal with lp didn't seem to stifle the stock price. Give it up. Company also has the option to cancel the deal at anytime.