Replies to post #465674 on Anavex Life Sciences Corp (AVXL)

[poguemahone]

Bottom lime: you don’t tell investors on CCs repeatedly that you have 4 years of cash runway and then pull this stunt.

Now you know the main reason why we are a $6 stock. It’s not because of the boogeyman, cabal, or corrupt FDA. The fault lies mainly with our CEO—and his poor decision-making.

[Steady_T]

That is not quite true. It depends on what the company does with the money it raises by selling stock.

If the company uses the money raised to increase the value of the company then there is no dilution.
In the case of Anavex, if that money results in an approval on multiple indications, the increase in share price will more than make up for the increased number of shares outstanding.

If the money raised does not result in an increase in SP commensurate with the increase in shares, then it is dilution.