Our previous post entitled ANAVEX: HIDDEN DEBT GIVES HIGHTENED URGENCY TO EQUITY RAISE presented the author’s belief that the company may soon use an arrangement with Lincoln Park to raise equity. The article questioned the company’s liquidity and noted that AVXL had $5.0 million of debt that appeared on the balance sheet as only $345k. Unfortunately, the debt figure the author used was incorrect and we apologize for any confusion this may have caused. The correct figures are debt of $4,982 which appears on the balance sheet as $345. This error also understated the implied cash balance the author projected the company would have at September 30, 2016.
However, the above does not change the author’s belief that the company will utilize the Lincoln Park financing and that the stock is overvalued. The company acknowledges it needs additional capital to implement its business plan and the author believes it is only a question of who will provide this capital. The author notes the company currently has limited institutional ownership (excluding index funds) and believes that any capital raised in the near term will be done using the Lincoln Park structure.
DG Value Surges On Recovery Plays
According to a copy of the firm's February investor update, Dov Gertzulin's DG Value Partners returned +4.48% net for the month of February, which ValueWalk has been able to review. Q4 2020 hedge fund letters, conferences and more Following this performance, the firm has returned +8.32% net for the year to the end of February. Read More