Replies to post #442371 on Anavex Life Sciences Corp (AVXL)

[kevindenver]

Genius or just a microcap level shenanigans and scheme?

The drug still has to prove itself out for these warrants to prove it self of value and also changes the calculus with the short position.

For fun disclosure, I'm long $SAVA with shares lent to shorts at a rate that has steadily declined from 38% to 23%

[Joseph_K]

Genius. Induce a pump and then dump the shares onto warrant exercisers to raise cash at a higher price.

When I first looked at SAVA today it was up about 14% on very high volume. It's now up about 3%. An extremely fast pump and dump? Faster than Cassava would have wanted?

Boi always says it's a highly manipulated stock. (Me, I don't know. I have a small number of shares and sort of track the company.)

[crescentmotor]

Induce a pump and then dump the shares onto warrant exercisers to raise cash at a higher price.

The warrant distribution program disclosed today by SAVA today is a genius move. The exercise of warrants during the bonus share period will involve corporate dilution but the beautiful thing is SAVA will be transferring 50% more stock to shareholders at exercise during this brief period for a net price of $22/share. Moreover, the issuance of the warrants will force the primary brokers, prior to issuance, to identify all legitimate holders of SAVA's common stock in order for the warrants to be properly registered. This will definitely put some pressure on those shorts who have sold naked shares. Finally, those shorts who want to benefit from buying any listed warrants for sale on the exchanges also have to come up with additional money to put into SAVA's coffers. The extra $500 million or so raised by this financing will really enhance SAVA's cash position and create additional leverage going into any future partnership discussions. SAVA's CEO made a ballsy move and is rewarding its long-term shareholders who have stuck by the company and endured horrific SAVA stock price destruction at the hands of some really evil people. SAVA just hired a director that was holding the third from the top position at the FBI. Hopefully, SAVA will take advantage of his talents. I have read the typical shallow detractor remarks today regarding the warrant deal from several AVXL longs. Truthfully, there are very few posters here that have the financial background to fully understand the mechanics and ramifications of this complicated warrant arrangement. Still long 50/50 AVXL and SAVA and extremely hopeful about both companies' prospects.