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Investing in our common stock involves a high degree of risk. You should consider carefully the risk factors described
below together with all of the risks, uncertainties and assumptions discussed in our most recent Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q, which are
incorporated herein by reference, together with the information in this prospectus supplement, the accompanying prospectus, the documents incorporated herein by reference and in any free writing
prospectus that we have authorized for use in connection with this offering, before deciding whether to invest in shares of our common stock.
Risks related to tax reform
The recently enacted comprehensive tax reform legislation could adversely affect our business and financial
On December 22, 2017, President Trump signed into law new legislation that significantly revises the Internal Revenue Code of 1986, as
amended. The newly enacted federal income tax law, among other things, contains significant changes to corporate taxation, including reduction of the corporate tax rate from a top marginal rate of 35%
to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of adjusted earnings (except for certain small businesses), limitation of the deduction for net operating losses to
80% of current year taxable income and elimination of net operating loss carrybacks, one time taxation of offshore earnings at reduced rates regardless of whether they are repatriated, elimination of
U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or
repealing many business deductions and credits. Notwithstanding the reduction in the corporate income tax rate, the overall impact of the new federal tax law is uncertain and our business and
financial condition could be adversely affected. In addition, it is uncertain if and to what extent various states will conform to the newly enacted federal tax law. The impact of this tax reform on
holders of our common stock is also uncertain and could be adverse. We urge prospective investors to consult with their legal and tax advisors with respect to this legislation and the potential tax
consequences of investing in or holding our common stock.
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. 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,