NEW YORK, July 8, 2013 /PRNewswire/ - Anavex Life Sciences Corp. ("Anavex" or
the "Company") (OTCQB: AVXL) today announced the closing of
$2.6-million in a private placement financing and conversion of
liabilities and an agreement with institutional investor Lincoln Park
Capital Fund, LLC ("Lincoln Park Capital") for a funding commitment of
up to $10-million with an initial investment of $100,000.
Additionally, Anavex is pleased to announce the appointment of seasoned
healthcare executive Dr. Christopher U. Missling as Chief Executive
Officer ("CEO") of the Company.
"We are thrilled that Dr. Missling has joined Anavex," said Tom
Skarpelos, director of Anavex. "He has a broad range of experience and
leadership qualities, along with a deep compassion for patients and
their challenges. This exceptional skill set makes him the ideal
leader to take Anavex to the next level as a clinical development
company focusing on Alzheimer's disease."
"I am excited to have joined Anavex and to be leading the efforts to
advance ANAVEX 2-73 to its next phase of human clinical trials," said
Dr. Christopher Missling, CEO of Anavex. "The financing agreements
provide us with a foundation to help build the company and the
flexibility to raise additional capital to help advance our lead
Alzheimer's drug. We believe it is important to push forward with
ANAVEX 2-73 in part because of the lack of therapies that address
Dr. Missling has over 20 years of healthcare industry experience within
large pharmaceutical companies, the biotech industry and investment
banking. He has been an investment banker in the healthcare practice
at Deutsche Bank, serving pharmaceutical, biotech, and diagnostic
companies, and most recently was head of healthcare investment banking
at Brimberg & Co. in New York. At Aventis (now Sanofi), Dr. Missling
worked as head of financial planning on all aspects of financial
strategy and M&A. He was the Chief Financial Officer of Curis (NASDAQ:
CRIS) and ImmunoGen (NASDAQ: IMGN) where during his tenure shareholder
value increased significantly. Dr. Missling has an MS and PhD from the
University of Munich in Chemistry and an MBA from Northwestern
University Kellogg School of Management.
Anavex announced a private placement offering and conversion of
liabilities of units at a price of $0.40 per unit. Each unit is
comprised of one common share of Anavex and one share purchase
warrant. Each warrant entitles the holder thereof to purchase one
common share at a price of $0.75 per share for a period of five years
from the date of issuance of the warrant. At the closing the Company
will issue 6,406,043 units for aggregate gross proceeds and conversion
of liabilities totaling $2,562,017. The closing of the private
placement and conversion of liabilities is subject to the satisfaction
of customary closing conditions.
R. F. Lafferty & Co., Inc. served as the Company's exclusive financial
advisor and placement agent for the offering.
$10-Million Financing Commitment
Anavex has also entered into a $10-million common stock purchase
agreement with Lincoln Park Capital, a Chicago-based institutional
investor. Under the agreement, Lincoln Park Capital initially
purchased 250,000 shares for $100,000. The Company has agreed to file
a registration statement with the U.S. Securities & Exchange Commission
("SEC") covering the shares that may be issued to Lincoln Park Capital
under the terms of the common stock purchase agreement. After the SEC
has declared the registration statement related to the transaction
effective, the Company has the right, at its sole discretion over a
period of three years, to sell up to an additional $9.9-million of its
common stock to Lincoln Park Capital under the terms set forth in the
agreement. Proceeds from the transaction will be used to help advance
human clinical trials of ANAVEX 2-73 and for general corporate
Under the terms of the agreement, there are no upper limits to the price
that Lincoln Park Capital may pay to purchase Anavex's common stock.
Anavex will control the timing and the amount of shares to be sold.
Lincoln Park Capital has no right to require any sales and is obligated
to purchase common stock as directed by Anavex. Under the terms of the
agreement, Lincoln Park Capital has agreed not to cause or engage in
any manner whatsoever, any direct or indirect short selling or hedging
of Anavex's shares of common stock. In consideration for entering into
the agreement, Anavex has issued shares of common stock to Lincoln Park
Capital as a commitment fee and will issue additional commitment fee
shares in proportion to the amount of shares purchased by Lincoln Park
Capital under the agreement.
Additional details regarding the private placement and conversion of
liabilities and Lincoln Park Capital commitment are included in a
Current Report on Form 8-K filed by Anavex with the Securities and
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security. The shares of common
stock are being sold pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended,
and applicable state securities laws.
About Anavex Life Sciences Corp.
Anavex Life Sciences Corp. (www.anavex.com) is a pharmaceutical company engaged in the development of novel drug
candidates. ANAVEX 2-73, a drug candidate developed to treat
Alzheimer's disease through disease modification, has undergone an
initial Phase 1 human clinical trial and was well tolerated in doses up
to 55mg. Conducted pre-clinical studies indicate that ANAVEX 2-73
demonstrates anti-amnesic and neuroprotective properties. Anavex is a
publicly traded corporation quoted as AVXL.
About Lincoln Park Capital Fund, LLC ("LPC")
LPC is an institutional investor headquartered in Chicago, Illinois.
LPC's experienced professionals manage a portfolio of investments in
public and private entities. These investments are in a wide range of
companies and industries emphasizing life sciences, specialty finance,
energy and technology. LPC's investments range from multiyear
financial commitments to fund growth to special situation financings to
long-term strategic capital offering companies flexibility and
consistency. For more information, visit www.lpcfunds.com.
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 and uncertainties in closing the
transactions relating to the funding commitment, the private placement
and conversion of liabilities, the risks and uncertainties inherent in
drug discovery and development, which include, without limitation, the
potential failure of development candidates to advance through
preclinical studies or demonstrate safety and efficacy in clinical
testing and the ability to pass clinical trials so as to move on to the
next phase, the risks and uncertainties in our ability to finance our
development or satisfy the rigorous regulatory requirements for new
drugs, our ability to attract and retain quality personnel, and that
despite positive results, our competitors may offer better or cheaper
alternatives. 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 hereof.
Anavex Life Sciences Corp.
Research & Business Development
Shareholder & Media Relations
Outside North America: +1 (416) 489-0092
SOURCE Anavex Life Sciences Corp.