Replies to post #114158 on Anavex Life Sciences Corp (AVXL)

[Investor2014]

No one has pulled me up on my error, so I'll do it (as I should).

I said $50,000 every other day, when in fact it is 50,000 shares.

So the calculation based on utilising the LPC facility fully is; 27 trading days * 50,000 shares = 1,350,000 shares. Which at the period average price per share of $5.0431 would raise $6.8M for Anavex.

This would corresponds to about 10% of the periods 13,540,838 shares trading volume.

So still, this does not seem a massive influence on proceedings.

[F1ash]

Since then there have been 55 business days, where every other day LPC can be asked to purchase $50,000 worth of shares from Anavex.

Glad to see you caught your $50k dollars vs 50k shares error yourself. :-)

I missed it, because I was preoccupied with another part of the statement that I believe is also incorrect.

Do the math on the following.


"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.

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



So let's see, during a three month period Anavex sold ~4.5 million shares to LPC.

3 months is ~90 days so they would have had to sell 50k shares to LPC every single day including weekends and holidays.

Much more likely Anavex used the "Accelerated Purchase" clause.


"Accelerated Purchases."

Subject to the terms and conditions of this Agreement, in addition to purchases of Purchase Shares as described in Section 2(a) above, the Company shall also have the right, but not the obligation, to direct the Investor by the Company’s delivery to the Investor of an Accelerated Purchase Notice from time to time, and the Investor thereupon shall have the obligation, to buy Purchase Shares at the Accelerated Purchase Price on the Accelerated Purchase Date in an amount equal to the Accelerated Purchase Share Amount (each such purchase, an “Accelerated Purchase” The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice for a Regular Purchase and the Closing Sale Price is not below $3.00 (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction).




"(e) “Accelerated Purchase Price”

means, with respect to any particular Accelerated Purchase made pursuant to Section 2(b) hereof, the lower of (i) ninety-six percent (96%) of the VWAP during (A) the entire trading day on the Accelerated Purchase Date, if the volume of shares of Common Stock traded on the Principal Market on the Accelerated Purchase Date has not exceeded the Accelerated Purchase Share Volume Maximum, or (B) the portion of the trading day of the Accelerated Purchase Date (calculated starting at the beginning of normal trading hours) until such time at which the volume of shares of Common Stock traded on the Principal Market has exceeded the Accelerated Purchase Share Volume Maximum or (ii) the Closing Sale Price on the Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

(f) “Accelerated Purchase Share Volume Maximum”

means a certain number of shares of Common Stock traded on the Principal Market during normal trading hours on the Accelerated Purchase Date equal to (i) the amount of shares of Common Stock properly directed by the Company to be purchased on the Accelerated Purchase Notice, divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

"Accelerated Purchase Share Amount”

means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor on an Accelerated Purchase Notice, which number of Purchase Shares shall not exceed the lesser of (i) 200% of the number of Purchase Shares to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase referred to in Section 2(b) hereof (subject to the Purchase Share limitations contained in Section 2(a) hereof) and (ii) the Accelerated Purchase Share Percentage multiplied by the trading volume of the Common Stock on the Principal Market during normal trading hours on the Accelerated Purchase Date.

https://www.sec.gov/Archives/edgar/data/1314052/000161577415003021/s102057_exhibit10-1.htm

Almost seems like there is some reason to "hurry" the LPC cash raise even if it means somewhat more dilution. Expensive upcoming trials perhaps?

Disclaimer: I'm not a CPA and everyone should check the original sources and especially the math for themselves. Don't ever buy or sell based on my posts here. Do your own DD and make your own decisions.

Look at what happened after Dec 2016. In the subsequent months the share price made significant gains. If LPC is indeed being tapped currently (if, if , if) then, might this be an excellent opportunity for true believers to add to their position?