NEW YORK, Oct. 27, 2014 (GLOBE NEWSWIRE) -- Anavex Life Sciences Corp. ("Anavex" or the "Company") (OTCQB:AVXL), a clinical-stage biopharmaceutical company developing novel drug candidates to treat Alzheimer's disease, other diseases of the central nervous system (CNS) and various types of cancer, has signed a $500,000 Securities Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park"), a long time institutional investor in the Company.
Under the terms of the agreement, Anavex has agreed to sell 2,000,000 shares of the Company's common stock to Lincoln Park at $0.25 per share, representing a premium of over 25% to the closing price on October 22, 2014, the day the deal was signed.
"Although Anavex remains fully funded through completion of the ANAVEX 2-73 and ANAVEX PLUS Phase 2 clinical trial, we are pleased to have an increased cash commitment from our long-term investors at Lincoln Park," said Dr. Christopher U. Missling, PhD, President and CEO of Anavex Life Sciences. "The $500,000 equity investment supplements our already strong balance sheet and will help Anavex continue developing novel and critical candidates for the treatments of Alzheimer's disease, other CNS diseases, and various types of cancers."
In addition to the common stock sold to Lincoln Park, Anavex also issued warrants to the institutional investor with exercise prices at a significant premium to the Company's current market price. Full terms of the deal can be found in the Company's 8-K filed on October 23, 2014 with the Securities and Exchange Commission.
About Lincoln Park Capital ("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 financing, energy and technology. LPC's investments range from multi-year financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency. For more information, visit www.lpcfunds.com.
About Anavex Life Sciences Corp.
Anavex Life Sciences Corp. (www.anavex.com) is a clinical-stage biopharmaceutical company engaged in the development of novel drug candidates to treat Alzheimer's disease, other CNS diseases and various types of cancer. ANAVEX 2-73, an orally available drug candidate developed to treat Alzheimer's disease through potential disease modification, has undergone an initial Phase 1 human clinical trial and was well tolerated in doses up to 55mg. Results from preclinical studies indicate that ANAVEX 2-73 demonstrates anti-amnesic and neuroprotective properties. A highly encouraging synergistic effect has also been observed between ANAVEX 2-73 and donepezil (Aricept®). The combined therapeutic, called ANAVEX PLUS, produced up to 80% greater reversal of memory loss in Alzheimer's disease models versus when the drugs were used individually. Anavex is a publicly traded corporation quoted as AVXL.
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 set forth in the Company's most recent Annual Report on Form 10-K filed with the SEC. 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.
CONTACT: For Further Information Anavex Life Sciences Corp. Research & Business Development Toll-free: 1-844-689-3939 Email: firstname.lastname@example.org Shareholder & Media Relations Toll-free: 1-866-505-2895 Outside North America: +1 (416) 489-0092 Email: email@example.com www.anavex.com
Source:Anavex Life Sciences Corp.