Replies to post #114018 on Anavex Life Sciences Corp (AVXL)

[F1ash]

Simple question: why didn't AVXL start with their cash raising exercise with LPC after announcing the start of the Rett trial.

Let me start with some disclaimers.

(I'm not a CPA. I actually hate looking at financial statements, but I'm not seeing anyone here willing to do it. So, fair warning I'm not the sharpest crayon in the box, therefore I'm completely open to being corrected if I go astray and for goodness sake verify for yourselves every single thing I'm about to write.)



I decided it would be interesting (to me anyway ) to see what price Anavex was willing to demand for their previous LPC shares.

They had to ask shareholders for permission recently to exceed 20% dilution because they had nearly used up their 6.7 million shares available to accumulate the $50 million available from LPC.


What I wondered is if I could determine at what price they sold the first ~5 million shares. I thought it might give me a clue how low they would be willing to go if they are indeed tapping LPC currently.



Here is what I found:

"During the three months ended December 31, 2016, the Company issued to Lincoln Park an aggregate of 4,500,012 shares of common stock under the Purchase Agreement, including 4,472,841 shares of common stock for an aggregate purchase price of $15,128,272 and 27,171 commitment shares. At December 31, 2016, an amount of $33,513,928 in value of its shares remained available under the 2015 Purchase Agreement.

I get an average purchase price of $3.38. Why on earth would management be satisfied with an average of only $3.38 per share if they were sitting on super positive data or a partnership? ( Everyone please check the source and math and never buy or sell based on anything I say here. Verify everything yourself and do your own math to verify.)

http://secfilings.nasdaq.com/filingFrameset.asp?FilingID=11830127&RcvdDate=2/7/2017&CoName=ANAVEX%20LIFE%20SCIENCES%20CORP.&FormType=10-Q&View=html