Nov 20 2010
Anavex Life Sciences Corp. ("ANAVEX" or the "Company") (OTCBB: AVXL) announces that it closed a private placement and issued securities to settle debt owed by the Company.
Private Placement of Units
On November 18, 2010 the Company issued 397,482 units at a purchase price of US$2.75 per unit for gross proceeds of US$1,093,075. Each unit consists of one share of our common stock and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one share of our common stock at a purchase price of US$4.50 per share for a period of 18 months. A finders fee of 10% of the gross proceeds may be paid to eligible finders.
Conversion of Convertible Notes
Pursuant to Convertible Notes outstanding in the amount of $1,919,418, on November 18, 2010, the Company issued 853,075 units to the note holders at a deemed price of $2.25 per unit. Each unit consists of one share of the Company's common stock and one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one share of the Company's common stock at a purchase price of US $3.00 per share for a period of 24 months.
Conversion of Interest Bearing Notes
The Company and certain of its creditors agreed to convert outstanding debt to common shares of the Company. On November 18, 2010, the Company issued 145,063 shares of common stock to the note holders of non-convertible, interest-bearing notes outstanding in the amount of $398,923 to retire those notes. The shares were issued at a deemed price of $2.75 per share.
Shares for Debt
On November 18, the Company issued 181,818 shares of the Company's common stock at a deemed price of $2.75 per share to one creditor in settlement of $500,000 debt owing by the Company.
Source: Anavex Life Sciences Corp.