Full Press Release Details
Anavex Announces $10 Million Private Placement of Convertible
Secures Capital to Execute Clinical Trial Phase 1b/2a in
Alzheimer s Disease and Advance Product Portfolio
New York, NY March 13, 2014 - Anavex Life Sciences
Corp. ( Anavex or the Company ) (OTCQB: AVXL), a clinical stage
biopharmaceutical company developing novel drug candidates to treat Alzheimer s,
diseases of the central nervous system (CNS) and various types of cancer,
announced today that it has entered into definitive agreements with several
institutional and accredited investors, including U.S. and international
healthcare funds, for a private placement of approximately $10 million in
principal amount of convertible debentures. In addition, the investors will
receive warrants to purchase up to approximately 66.7 million shares of common
stock in the aggregate.
The debentures are convertible into common stock at a
conversion price of $0.30 per share and have a term of 30 years from issuance.
There are no interest payments in connection with the debentures. The investors
will receive Series A warrants to purchase up to approximately 33.3 million
shares of common stock and Series B warrants to purchase up to approximately
33.3 million shares of common stock. The Series A warrants and Series B warrants
have exercise prices of $0.30 per share and $0.42 per share, respectively, and
are immediately exercisable with a 5 year term. The transaction is anticipated
to close on or about March 17, 2014, subject to the satisfaction of customary
This financing is an extremely important milestone for
Anavex, said Christopher U. Missling, PhD, President and CEO of Anavex. "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."
Maxim Group LLC served as the exclusive placement agent for the
The securities offered in this financing transaction have not
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), or applicable state securities laws. Accordingly, the securities may not
be offered or sold in the United States except pursuant to an effective
registration statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state securities laws.
Pursuant to the terms of a registration rights agreement entered into with the
purchasers, the Company has agreed to file within 30 days of the closing of this
transaction a registration statement with the Securities and Exchange Commission
registering the resale of the shares of common stock issuable upon conversion of
the debentures and exercise of the warrants. Any offering of Anavex's securities
under the resale registration statement referred to above will be made only by
means of a prospectus.
This release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be any sale of
the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the
securities laws of such jurisdiction.
About Anavex Life Sciences Corp.
Anavex Life Sciences Corp. (www.anavex.com) is a clinical stage
biopharmaceutical company engaged in the development of novel drug candidates to
treat Alzheimer s, CNS diseases and various types of cancer. ANAVEX 2-73, an
orally available drug candidate developed to treat Alzheimer's through potential
disease modification, has undergone an initial Phase 1 human clinical trial and
was well tolerated in doses up to 55mg. Results from pre-clinical
studies indicate that ANAVEX 2-73 demonstrates anti-amnesic and neuroprotective
properties. A highly encouraging synergistic effect has also been observed
between ANAVEX 2-73 and Aricept (donepezil). The combined therapeutics ANAVEX
PLUS produced up to 80% greater reversal of memory loss in Alzheimer s disease
models versus when the drugs were used individually. Anavex is a publicly traded
corporation quoted as AVXL.
Forward-Looking Statements
Statements in this press release that are not strictly
historical in nature are forward-looking statements. These statements are only
predictions based on current information and expectations and involve a number
of risks and uncertainties. Actual events or results may differ materially from
those projected in any of such statements due to various factors, including the
risks set forth in the Company s most recent Annual Report on Form 10-K filed
with the SEC. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. All
forward-looking statements are qualified in their entirety by this cautionary
statement and Anavex Life Sciences Corp. undertakes no obligation to revise or
update this press release to reflect events or circumstances after the date
For Further Information
Anavex Life Sciences Corp.
Research & Business Development
Email: info@anavex.com
Shareholder & Media Relations
Toll-free: 1-866-505-2895
Outside North America: +1 (416) 489-0092
Email: ir@anavex.com