GeoVax to Raise Approximately $8.5 Million of Gross Proceeds in Offering Priced Above-the-Market

Rhea-AI Summary

GeoVax Labs, Inc. (Nasdaq: GOVX) has announced a registered direct offering of 1,700,000 shares of common stock (or equivalents) at $5.00 per share, priced above-the-market. The biotechnology company is expected to raise approximately $8.5 million in gross proceeds. In a concurrent private placement, GeoVax will issue warrants to purchase up to 1,700,000 additional shares at $5.00 per share, exercisable immediately with a five-year term.

Roth Capital Partners is acting as the exclusive placement agent. The offering is expected to close around August 21, 2024. GeoVax intends to use the net proceeds for working capital and general corporate purposes. The offering is made pursuant to a previously filed and effective shelf registration statement.

Positive

• Raised approximately $8.5 million in gross proceeds
• Offering priced above-the-market at $5.00 per share
• Warrants issued for additional 1,700,000 shares at $5.00 per share

Negative

• Potential dilution of existing shareholders due to new share issuance

Financial Analyst

GeoVax's $8.5 million capital raise, priced above-market at $5.00 per share, signals investor confidence in the company's potential. This infusion strengthens their financial position, providing important funds for ongoing clinical-stage developments. The inclusion of warrants at the same price suggests a bullish outlook on future growth.

However, the dilutive effect of issuing 1.7 million new shares (plus potential warrant exercises) could pressure existing shareholders. The true impact hinges on how effectively GeoVax deploys this capital to advance its pipeline and create value. Investors should closely monitor the company's burn rate and clinical progress in the coming quarters.

Biotech Industry Expert

This capital raise is a strategic move for GeoVax, bolstering its resources for advancing its immunotherapy and vaccine candidates. The above-market pricing suggests strong investor interest in the company's pipeline, particularly in the high-potential areas of cancer and infectious diseases.

However, the biotech sector is notoriously cash-intensive and $8.5 million may only provide a runway. Investors should watch for key clinical milestones and potential partnerships that could further validate GeoVax's technology platforms. The company's ability to leverage this funding into tangible progress in its clinical trials will be important for maintaining momentum and attracting future investment.

ATLANTA, GA, Aug. 20, 2024 (GLOBE NEWSWIRE) -- GeoVax Labs, Inc. (Nasdaq: GOVX), a clinical-stage biotechnology company developing immunotherapies and vaccines against cancer and infectious diseases, today announced that it has entered into a definitive securities purchase agreement with a certain institutional investor for the purchase and sale of 1,700,000 shares of the Company’s common stock (or common stock equivalents) at a price of $5.00 per share in a registered direct offering priced above-the-market under Nasdaq rules.

In addition, in a concurrent private placement, the Company will issue to the investor warrants to purchase up to 1,700,000 shares of common stock. The warrants have an exercise price of $5.00 per share, will be exercisable immediately following the date of issuance and will have a term of five years from the date of issuance.
Roth Capital Partners is acting as the exclusive placement agent for the offering.

The gross proceeds to the Company from this offering are expected to be approximately $8.5 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes. The closing of the offering is expected to occur on or about August 21, 2024, subject to the satisfaction of customary closing conditions.

The shares in the offering described above are being offered by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-277585) previously filed with the Securities and Exchange Commission (the ”SEC”) and declared effective by the SEC on March 13, 2024. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement, relating to the offering that will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting Roth Capital Partners, LLC at 888 San Clemente Drive, Newport Beach CA 92660, by phone at (800) 678-9147 or by accessing the SEC’s website, www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 novel vaccines for many of the world’s most threatening infectious diseases and therapies for solid tumor cancers. The company’s lead clinical program is GEO-CM04S1, a next-generation COVID-19 vaccine for which GeoVax was recently awarded a BARDA-funded contract to sponsor a 10,000-participant Phase 2b clinical trial to evaluate the efficacy of GEO-CM04S1 versus an approved COVID-19 vaccine. In addition, GEO-CM04S1 is currently in three Phase 2 clinical trials, being evaluated as (1) a primary vaccine for immunocompromised patients such as those suffering from hematologic cancers and other patient populations for whom the current authorized COVID-19 vaccines are insufficient, (2) a booster vaccine in patients with chronic lymphocytic leukemia (CLL) and (3) a more robust, durable COVID-19 booster among healthy patients who previously received the mRNA vaccines. In oncology the lead clinical program is evaluating a novel oncolytic solid tumor gene-directed therapy, Gedeptin®, in a multicenter Phase 1/2 clinical trial for advanced head and neck cancers. GeoVax has a strong IP portfolio in support of its technologies and product candidates, holding worldwide rights for its technologies and products. The Company has a leadership team who have driven significant value creation across multiple life science companies over the past several decades. For more information about the current status of our clinical trials and other updates, 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 preventative 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 preventative vaccines with the desired characteristics in a timely manner, GeoVax’s immuno-oncology products and preventative vaccines will be safe for human use, GeoVax’s vaccines will effectively prevent targeted infections in humans, GeoVax’s immuno-oncology products and preventative 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 law. 

Company Contact:		Investor Relations Contact:		Media Contact:
info@geovax.com		austin.murtagh@precisionaq.com		sr@roberts-communications.com
678-384-7220		212-698-8696		202-779-0929

FAQ

How much did GeoVax (GOVX) raise in its recent offering?

GeoVax Labs, Inc. (GOVX) raised approximately $8.5 million in gross proceeds through a registered direct offering of 1,700,000 shares of common stock or equivalents.

What was the price per share for GeoVax's (GOVX) recent offering?

The offering was priced at $5.00 per share, which was above-the-market under Nasdaq rules.

When is the expected closing date for GeoVax's (GOVX) recent offering?

The closing of the offering is expected to occur on or about August 21, 2024, subject to customary closing conditions.

What will GeoVax (GOVX) use the proceeds from the offering for?

GeoVax intends to use the net proceeds from this offering for working capital and general corporate purposes.