Table of Contents
Risks related to this offering
We have broad discretion in the use of our cash and cash equivalents, including the net proceeds from this
offering, and may not use them effectively.
Our management will have broad discretion in the application of our cash and cash equivalents, including the net proceeds from this offering,
and could spend the proceeds in ways that do not improve our results of operations or enhance the value of our common stock. The failure by our management to apply these funds effectively could result
in financial losses that could have a material adverse effect on our business, cause the price of our common stock to decline and delay the development of AVXS-101. Pending their use, we may invest
our cash and cash equivalents, including the net proceeds from this offering, in a manner that does not produce income or that loses value. We will not receive proceeds from the sale of the shares by
the selling stockholder. See "Use of Proceeds."
If you purchase shares of common stock in this offering, you will suffer immediate dilution of your
The public offering price of our common stock will be substantially higher than the net tangible book value per share of our common stock.
Therefore, if you purchase shares of our common stock in this offering, you will pay a price per share that substantially exceeds our net tangible book value per share after this offering. To the
extent outstanding options are exercised, you will incur further dilution. Based on the public offering price of $70.00 per share, you will experience immediate dilution of $55.43 per share,
representing the difference between the public offering price and our as adjusted net tangible book value per share as of March 31, 2017 after giving effect to this offering. See "Dilution."
The price of our common stock may be volatile and fluctuate substantially, which could result in substantial
losses for holders of our common stock.
The market price of our common stock has been, and is likely to continue to be, highly volatile. Since our initial public offering in February
2016, the intraday price of our common stock has fluctuated from a low of $16.11 to a high of $85.98. As a result of this volatility, you may not be able to sell your common stock at or above the
price that you paid for it. The price of our common stock may continue to fluctuate substantially due to many factors, including:
- results of clinical trials of our product candidate or those of our competitors;
- the success of competitive products or technologies;
- commencement or termination of collaborations;
- regulatory or legal developments in the United States and other countries;
- developments or disputes concerning patent applications, issued patents or other proprietary rights;
- the recruitment or departure of key personnel;
- the level of expenses related to any of our product candidates or clinical development programs;
- the results of our efforts to discover, develop, acquire or in-license additional product candidates;
- actual or anticipated changes in estimates as to financial results, development timelines or recommendations by securities analysts;