Replies to post #461145 on Anavex Life Sciences Corp (AVXL)

[Hosai]

If they can get their pill approved for AD then any basic calculation puts the valuation way above £100, we'd probably be talking more over $1,000 a share though people tend to be embarrissed to say those kind of numbers.
These were the valuations Mayo gave just for FDA approval just for AD just in USA and the assumptions in the calc didn't seem that extreme - https://www.sotcanalytics.com/archive-2023 (scroll a third of the way down).
Therefore when you say "if the price is right it's bye bye". It's hard to see how any BO price could tempt the management as things stand. Sounds more like you're trying to reassure yourself because you have a fear lurking in the back of your mind of a massive sp increase at some point.
You should be happy for us if we get the huge sp increase some of us can join you in giving $7 million odd to charity each year.

[Steady_T]

You were pretty selective in quoting from Investopedia about poison pills.

Because many shares come with ownership and voting rights, it is possible to own enough to purchase a controlling amount of shares with voting rights. So, if one entity owns the right amount of shares, their votes weigh more than those with fewer shares.

To prevent this, the potential target creates a provision that prevents hostile takeovers by establishing a share ownership limit. This provision may specify that if a single entity or person acquires a stake of 15% or more, the company implements a share issuance or other measure that makes the hostile action ineffective or undesirable. Because many shares come with ownership and voting rights, it is possible to own enough to purchase a controlling amount of shares with voting rights. So, if one entity owns the right amount of shares, their votes weigh more than those with fewer shares.

To prevent this, the potential target creates a provision that prevents hostile takeovers by establishing a share ownership limit. This provision may specify that if a single entity or person acquires a stake of 15% or more, the company implements a share issuance or other measure that makes the hostile action ineffective or undesirable.

So having a poison pill won't prevent a hostile takeover IF the acquiring company is will to pay a higher price. The question becomes how much higher a price?