Single investor buys 8% debenture that converts into units
By Angela McDaniels
Tacoma, Wash., May 9 - Anavex Life Sciences Corp. issued a $500,000 one-year convertible debenture to one investor on May 4, according to an 8-K filing with the Securities and Exchange Commission.
Anavex agreed on April 19 to issue $1 million of debentures to the investor. The company issued a $250,000 one-year debenture to the investor on April 20. The remainder of the placement is expected to settle within one month.
The debentures may be converted at any time into units at a conversion price of $3.00 per share. Each unit is comprised of one share of common stock and one warrant, and each warrant is exercisable for two years into one additional common share at an exercise price of $4.00.
The conversion price reflects a 6.38% premium to the April 18 closing share price of $2.82. The warrant strike price is a 41.84% premium to that price.
The debentures can be retired early under circumstances that are agreeable to both the company and the purchaser, according to the SEC filing.
The company paid $100,000 of fees to the investor for arranging the convertibles.
In connection with the latest debenture, the investor exercised its right to acquire 33,334 shares and 33,334 warrants for a total of $100,000.
Anavex is a pharmaceutical company based in Hoboken, N.J.
| Issuer: | Anavex Life Sciences Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $1 million
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Conversion price: | $3.00
|
| Warrants: | One per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $4.00
|
| Pricing date: | April 19
|
| Settlement dates: | April 20 (for $250,000); May 4 (for $500,000)
|
| Stock symbol: | OTCBB: AVXL
|
| Stock price: | $2.89 at close April 19
|
| Market capitalization: | $79.34 million
|
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