Anavex Life Sciences Corp. ("Anavex") (OTCBB: AVXL) is pleased to announce that it has raised $1,575,000 through the exercise of warrants. Funds will be used to continue the Phase I clinical trial of ANAVEX 2-73, the company's lead drug candidate for Alzheimer's disease, to advance other compounds in the Anavex pipeline, and for general corporate purposes.
"Anavex appreciates the continued support of its shareholders. The warrant exercise was an ideal way for us to raise capital at this time," said Dr. Cameron Durrant, Executive Chairman of Anavex. "Our company has made huge strides in recent months and we remain excited by the rapid and positive advancement of the ANAVEX 2-73 Phase I clinical trial, in which dosing was recently accelerated to 30mg from 10mg. We, and the Safety Review Committee, are very pleased with ANAVEX 2-73's progress. There have been no adverse effects recorded after the administration of ANAVEX 2-73 at the doses studied to date."
Warrants Exercised
Two investors exercised 700,000 warrants for 700,000 shares of common stock at $2.25 for proceeds of $1,575,000.
Pursuant to the financing described in a press release and Form 8-K filed with the U.S. Securities and Exchange Commission on May 9, 2011, the company issued a $250,000 convertible debenture to one investor on April 20, 2011 and a $500,000 convertible debenture to one investor on May 4, 2011. Anavex does not expect to issue additional convertible debentures at the same terms, at this time.
Short bursts of exercise can lower dementia risk