Full Press Release Details
ANAVEX PROVIDES CORPORATE UPDATES
Athens, Greece, April 9, 2010 Anavex Life Sciences Corp.
( ANAVEX or the Company ) (OTCBB: AVXL) announced that it has entered into
various agreements, made a change of executive officer, issued shares pursuant
to various agreements and closed a private placement.
Contract Lease Agreement
On February 1, 2010, ANAVEX entered into a contract lease
agreement with Euro Genet Labs SA, whereby Euro Genet Labs agreed to provide
ANAVEX with research facilities for it to conduct its research and development
program for a monthly rent of US $125,000. The agreement is for three years and
may be terminated by either party by giving three months written notice.
Amendment to Consulting Agreement
On January 2, 2010, ANAVEX signed a second amended consulting
agreement with Cameron Durrant, whereby ANAVEX retained the services of Mr.
Durrant as the Executive Chairman of the Company commencing as of January 2,
2010. In consideration of Mr. Durrant s services, ANAVEX agreed to pay him a
monthly fee of $25,000, paid every month, effective which equates to $300,000
base over the course of one year. ANAVEX agreed to pay this base amount gross
every calendar month. The term of this agreement is for a period of two years
commencing on January 2, 2010 and expiring on January 1, 2012.
On May 15, 2008, ANAVEX terminated the services of Panos
Kontzalis, the Company s former Chief Executive Officer and agreed to a
severance package consisting of the issuance of 65,000 shares of the Company s
common stock. In addition, ANAVEX issued a promissory note payable to him in the
amount of $200,000. This promissory note was without interest and had specified
repayment terms. ANAVEX repaid $100,000 in accordance with the repayment terms.
On February 12, 2010, ANAVEX settled the $100,000 balance owing by issuing
49,505 shares of the Company s stock to him.
Convertible Loan Agreement
On February 22, 2010, ANAVEX entered into a convertible loan
agreement wherein one investor agreed to loan ANAVEX a total of $1,000,000. The
loan is unsecured and convertible into shares of the Company s common stock. The
loan bears interest at a rate of 20% per annum and is to be paid in full on
February 22, 2012. ANAVEX may prepay any portion of the principal and interest
amount of the loan at any time after February 22, 2011 by giving 30 days written
notice to the holder. At any time after August 22, 2010 until the loan is
repaid, the holder may exercise its right to convert all or a portion of the
total outstanding amount of the loan as of that date into shares of the
Company s common stock at $2.35 per share. ANAVEX granted the holder piggyback
registration rights with respect to the shares underlying the loan, which is to
be in effect from the date of issuance of the shares until the shares are
eligible for sale pursuant to Rule 144 under the Securities Act of 1933.
Private Placement Subscription Agreements
On April 5, 2010, ANAVEX sold an aggregate of 92,499 units of
the Company s securities at a purchase price of $2.60 per unit for gross
proceeds of $240,497.50. Each unit consists of one share of common stock in the
capital of the Company and one-half of one common share purchase warrant. One
full warrant entitles the holder to purchase one additional share of common
stock at a price of $3.50 per warrant share for a period of one year.
Termination of Consulting Agreement
On June 16, 2009, ANAVEX appointed Dr. Herve de Kergrohen as
its Chief Executive Officer pursuant to a consulting agreement effective June
12, 2009. The agreement was for a period of two years and either party could
terminate the agreement by providing the other party with 60 days written
notice. The consulting agreement was terminated on March 1, 2010 and Dr. de
Kergrohen is no longer employed by the Company. ANAVEX terminated the consulting
agreement with Dr. de Kergrohen because it was agreed that Dr. de Kergrohen was
not able to secure significant financings required for Phase 1 clinical trials
and general working capital and ANAVEX could no longer incur the high
contractual costs of his consulting agreement. As per his consulting agreement,
Dr. De Kergrohen was paid 2 months pay as severance. Dr. de Kergrohen still
remains one of the Company s directors, but the Company s board of directors has
not nominated him as a candidate for a director at its next annual meeting of
Upon the termination of Dr. de Kergrohen, Harvey Lalach, the
Company s President, Chief Financial Officer, and Secretary; a director of the
Company; and chair of the Company s nomination committee, has acted as the
Company s principal executive officer.
For the past 22 years Mr. Lalach has been involved in various
aspects of the securities industry. From 1986 through to 1997 he was involved in
various roles in financial institutions starting at the Vancouver Stock Exchange
and later working in securities related roles for BMO Nesbitt Burns and TD Bank.
For the past 10 years Mr. Lalach has focused on the operation and administration
of numerous start-up US and Canadian public companies serving as both director
and officer in various capacities. Most recently Mr. Lalach served as President
and CEO for Assure Energy, Inc. (OTCBB: ASUR) and Quarry Oil & Gas Corp.
(TSXV: QUC). Throughout his career, Mr. Lalach has gained extensive experience
in the management and governance of listed public companies.
Re-pricing of Stock Options
On March 26, 2010, ANAVEX re-priced an aggregate of 600,000
stock options granted to its directors, to an exercise price of $3.10 per share
to reflect the current market price of shares of the Company s common stock.
About Anavex Life Sciences Corp.
Anavex Life Sciences Corp. (www.anavex.com) is an emerging
biopharmaceutical company engaged in the discovery and development of novel drug
targets for the treatment of cancer and neurological diseases such as
Alzheimer's, epilepsy and depression. The company's proprietary SIGMACEPTOR
Discovery Platform involves the rational design of drug compounds that fulfill
specific criteria based on unmet market needs and new scientific advances.
Selected drug candidates demonstrate high, non-exclusive affinity for sigma
receptors, which are involved in the modulation of multiple cellular biochemical
ANAVEX's SIGMACEPTOR -N program involves the development of
novel and original drug candidates that target neurological and
neurodegenerative diseases (Alzheimer's disease, epilepsy, depression, pain).
The company's lead drug candidates exhibit high, non-exclusive affinity for
sigma receptors with strong evidence for anti-amnesic and neuroprotective
properties. The company believes that oxidative stress, not amyloid-beta, is the
cause of Alzheimer's. ANAVEX 1-41 and ANAVEX 2-73 modulate sigma receptors, a
unique class of receptor molecules, to guard against oxidative stress and repair
cells compromised by its effects. So far, through the advanced pre-clinical
phase of development, the compounds have performed extremely well in