GeoVax files for equity offering: Stock Soars 75%

On Monday, several stocks manage to deliver gains to its investors and one of the notable gainers from among small-cap stocks was GeoVax Labs (OTCQB:GOVX). It is a biotechnology company that is involved in the manufacturing of vaccines to protect humans against infectious diseases and cancer. 

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Filed A Preliminary Prospectus

The company makes these vaccines by utilizing its proprietary vaccine platform GV-MVA-VLPTM. On Monday, the GeoVax Labs stock soared by as much as 75% after a key announcement from the company. Considering the significant gains made by the GeoVax stock it could be necessary for investors to take a closer look at the developments surrounding the company. 

On Monday, the company announced that it has filed the preliminary prospectus meant for the public offering of units worth as much as $11.5 million. Each unit is going to be made up of one common share in GeoVax and one five year warrant that gives the holder the right to purchase one common share. 

The company has not yet announced the price, volume, and the terms of the offering. However, it seems that it has already caused enough of a buzz in the market considering the remarkable gains made by the GeoVax stock on Monday. 

The stock is likely going to be on the radars of investors throughout the course of the week as well and it remains to be seen if it can further add to its gains. While the latest announcement has caused a fair degree of excitement in the markets, it should be noted that back in June GeoVax had actually completed a private placement worth as much as $1 million.

As per the terms of the offering, the company issued its investors convertible senior secured debentures worth as much as $1,200,000. The offering also came with a 12.5% issue discount. In addition to that, GeoVax also issued warrants that will allow investors to purchase as many as 2,400,000 shares of the company’s common stock. It is important to note that it is mandatory to convert the debentures into GeoVax common stock. The debentures are going to mature a year from the date on which they were issued by GeoVax. 

Earnings Review 

The company announced its financial results for the first fiscal quarterback in May and managed to reduce its net losses. The net loss for the period that ended on March 31 this year stood at $595,694. In the year-ago period, GeoVax had posted a net loss of as much as $701,454. Revenues for the period shot up to $715,977, which was again a considerably higher figure than the $364,232 that the company had generated in the year-ago period. The company reported a cash balance of $607,000 at the end of the quarter.

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