Replies to post #186797 on Anavex Life Sciences Corp (AVXL)

[kevindenver]

The rules and regulations for stock offering to the public is highly regulated. The types of financing tactics vary greatly depending on many factors.

Pass the series 7 and you will understand how the SEC and FINRA regulate primary and secondary equity offerings.

[justthefactsmam]

sections below are from the purchase agreement between avxl and LPC. while i don't believe they are not somehow getting around this, this is nevertheless the provision regarding short/hedging in the agreement.

No Short-Selling or Hedging by Lincoln Park

Lincoln Park has agreed that neither it nor any of its affiliates shall engage in any direct or indirect short-selling or hedging of our common stock during any time prior to the termination of the Purchase Agreement.

Lincoln Park represented to us that at no time prior to the date of the Purchase Agreement has Lincoln Park or its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our Common Stock or any hedging transaction. Lincoln Park agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will not enter into or effect, directly or indirectly, any of the foregoing transactions.

[BAR123]

Didn’t AVXL give over 400,000 shares to LPC as part of the deal. I believe this was done upfront and they probably made a couple million off of that transaction alone. I may be wrong but if memory serves me correct I think it was something like that