Convertible debenture sold with warrants for about 66.7 million shares
By Devika Patel
Knoxville, Tenn., March 13 - Anavex Life Sciences Corp. said it plans to raise about $10 million in a private placement of convertible debentures. Maxim Group LLC is the agent.
The 0% debentures convert to common stock at $0.30 per share, which is a 33.33% discount to the March 12 closing share price of $0.45. The debentures mature in 30 years.
The investors also will receive series A warrants for about 33.3 million shares and series B warrants for about 33.3 million shares. The five-year warrants are each exercisable at $0.30 and $0.42, respectively, which are 33.33% and 6.67% discounts to the March 12 closing share price.
Settlement is expected March 17.
"This financing is an extremely important milestone for Anavex," president and chief executive officer Christopher U. Missling said in a press release. "We plan to use the proceeds for the clinical trial phase 1b/2a of Anavex Plus in Alzheimer's patients and to grow our product pipeline."
Anavex is a pharmaceutical company based in Hoboken, N.J.
| Issuer: | Anavex Life Sciences Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $10 million (approximate)
|
| Maturity: | 30 years
|
| Coupon: | 0%
|
| Conversion price: | $0.30
|
| Warrants: | For about 66.7 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike prices: | $0.30, $0.42
|
| Agent: | Maxim Group LLC
|
| Pricing date: | March 13
|
| Settlement date: | March 17
|
| Stock symbol: | OTCBB: AVXL
|
| Stock price: | $0.45 at close March 12
|
| Market capitalization: | $16.19 million
|
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