Replies to post #402329 on Anavex Life Sciences Corp (AVXL)

[sab63090]

Looks like an ATM to me, but how would you name this potential capital raise?

[WolfofMia]

Thank you Doc, your knowledge of this things never stops to amaze me.

In my opinion you sound like you are hedge fund Doctor of sort.

Maybe they are teaching these things in medical school now days.

GL with your "very small AVXL position".

[bas2020]

The key point is that AVXL is in full control of any selling... if/when they decide it's needed.

AVXL will sell the shares at larger discounts on uptrends or short spikes.

[kevindenver]

The LPC agreement is more like a "Put" agreement whereby LPC must purchase the shares per the formula up to agreed amounts. The formula mitigates the risk to LPC and is common in equity financing agreements. The terms of the price calculation are fair.

The Cantor agreement had no obligation of Cantor to buy, but simply for Cantor to act as an intermediary or placement agent for a 3% fee with discretion for Cantor to not act, but to instead act on good faith based on market conditions.