GeoVax Announces Closing of $10 Million Private Placement

Rhea-AI Summary

GeoVax Labs, Inc. (Nasdaq: GOVX) has successfully closed a private placement, issuing 707,484 shares of common stock and 2,360,000 pre-funded warrants to purchase common stock. The offering raised approximately $10 million before expenses, with shares sold at a price of $3.26 each. The funds will support clinical trial expenses, working capital, and corporate initiatives. The securities are not registered under the Securities Act of 1933 and were offered to accredited investors only. GeoVax is developing vaccines and therapies against infectious diseases and cancer.

Positive

• Raised approximately $10 million from the private placement.
• Funds allocated for clinical trial expenses and working capital.

Negative

• Securities not registered under the Securities Act of 1933.
• Investor offerings restricted to accredited investors only.

Atlanta, GA, Jan. 20, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- GeoVax Labs, Inc. (Nasdaq: GOVX), a biotechnology company specializing in developing human vaccines and cancer immunotherapies, announced today the closing of its previously announced private placement for the issuance and sale of 707,484 shares of common stock, 2,360,000 pre-funded warrants to purchase common stock, and accompanying warrants to purchase an aggregate of up to 3,067,484 shares of common stock. Each share of common stock (or pre-funded warrant in lieu thereof) is being sold together with an accompanying warrant at a combined effective purchase price of $3.26. The warrants are exercisable immediately at an exercise price of $3.26 per share and will expire five years from the date of issuance.

Maxim Group LLC acted as the sole placement agent for the private placement.

The gross proceeds from this offering were approximately $10.0 million, before deducting placement agent’s fees and other offering expenses. The Company intends to use the net proceeds from the private placement for clinical trial expenses, working capital and general corporate purposes.

The shares of common stock, pre-funded warrants and warrants described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares issuable upon exercise of the pre-funded warrants and warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About GeoVax

GeoVax Labs, Inc. is a clinical-stage biotechnology company developing human vaccines and immunotherapies against infectious diseases and cancer using novel proprietary platforms. GeoVax’s product pipeline includes two ongoing Phase 2 clinical trials of GEO-CM04S1 (formerly COH04S1) for COVID-19 as a universal booster vaccine to mRNA vaccines authorized by the U.S. Food and Drug Administration (FDA) and as a primary vaccine for use in immunocompromised patients. In addition to GEO-CM04S1 for COVID-19, GeoVax is developing GEO-CM02 as a pan-coronavirus vaccine. The Company is also conducting a Phase 1/2 clinical trial of Gedeptin® for treatment of head and neck cancer. Gedeptin® has been granted orphan drug status by the FDA. Additional research and development programs include preventive vaccines against Zika Virus, hemorrhagic fever viruses (Ebola, Sudan, Marburg, and Lassa) and malaria, as well as immunotherapies for multiple solid tumors. The Company’s portfolio of wholly owned, co-owned, and in-licensed intellectual property stands at over 70 granted or pending patent applications spread over 20 patent families.

For additional information about GeoVax, visit our website: www.geovax.com.

Forward-Looking Statements

This release contains forward-looking statements regarding GeoVax’s business plans. The words “believe,” “look forward to,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual results may differ materially from those included in these statements due to a variety of factors, including whether: GeoVax is able to obtain acceptable results from ongoing or future clinical trials of its investigational products, GeoVax’s immuno-oncology products and preventive vaccines can provoke the desired responses, and those products or vaccines can be used effectively, GeoVax’s viral vector technology adequately amplifies immune responses to cancer antigens, GeoVax can develop and manufacture its immuno-oncology products and preventive vaccines with the desired characteristics in a timely manner, GeoVax’s immuno-oncology products and preventive vaccines will be safe for human use, GeoVax’s vaccines will effectively prevent targeted infections in humans, GeoVax’s immuno-oncology products and preventive vaccines will receive regulatory approvals necessary to be licensed and marketed, GeoVax raises required capital to complete development, there is development of competitive products that may be more effective or easier to use than GeoVax’s products, GeoVax will be able to enter into favorable manufacturing and distribution agreements, and other factors, over which GeoVax has no control.

Further information on our risk factors is contained in our periodic reports on Form 10-Q and Form 10-K that we have filed and will file with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by U.S. federal securities law. 

GeoVax Labs, Inc.
678-384-7220
investor@geovax.com

FAQ

What is the purpose of GeoVax's recent private placement?

The private placement raised approximately $10 million to fund clinical trial expenses and working capital.

What are the terms of the warrants issued in the latest offering by GeoVax?

The warrants are exercisable immediately at an exercise price of $3.26 per share and will expire five years from the date of issuance.

How much capital did GeoVax Labs raise in its private placement on January 20, 2022?

GeoVax raised approximately $10 million from the private placement.

What type of investors participated in GeoVax's stock offering?

The securities were offered only to accredited investors.

What does the forward-looking statement in GeoVax's press release indicate?

It outlines potential risks and uncertainties that could affect GeoVax's future business and financial performance.