GeoVax Labs, a clinical-stage biotechnology company, has secured a $4.5 million registered direct offering through a securities purchase agreement with a healthcare-focused institutional investor. The transaction involves the sale of 3,435,115 shares of common stock and accompanying warrants, priced at $1.31 per share under Nasdaq market rules.
The financing will provide critical capital for the company's ongoing research and development initiatives, with a primary focus on advancing its COVID-19 vaccine program and oncology treatments. GeoVax's lead clinical programs include GEO-CM04S1, a next-generation COVID-19 vaccine currently undergoing multiple Phase 2 clinical trials, and Gedeptin®, an innovative gene-directed therapy for solid tumor cancers.
The offering includes warrants with an exercise price of $1.31 per share, contingent upon shareholder approval and valid for five years. Additionally, the company will amend existing warrants held by the investor, reducing their exercise price and extending their term to align with the current offering.
The strategic capital raise comes at a crucial time for GeoVax, as the company continues to develop targeted therapies for immunocompromised patients and explore novel approaches to COVID-19 vaccination and cancer treatment. The funds will be used for working capital and general corporate purposes, supporting the company's ongoing research and development efforts.
A.G.P./Alliance Global Partners is serving as the sole placement agent for this offering, which is being conducted under an existing shelf registration statement filed with the U.S. Securities and Exchange Commission.
The investment underscores the continued interest in innovative biotechnology companies developing advanced medical solutions for complex healthcare challenges. GeoVax's multifaceted approach to vaccine development and cancer therapy represents a potentially significant contribution to medical science, with implications for patient care and treatment strategies.
