GeoVax Labs Offers $8.5 Mln Of Shares; Stock Down Over 25% In Pre-Market

(RTTNews) - GeoVax Labs, Inc. (GOVX), a company focused on cancer and infectious diseases, announced on Tuesday that it has inked a deal with an institutional investor to sell 1.700 million shares at $5 per share in a registered direct offering priced above-the-market.

In addition, in a concurrent private placement, the drug maker will issue to the investor warrants to purchase up to 1.700 million shares with an exercise price of $5 per share.

The gross proceeds to the company from the offering are expected to be around $8.5 million.

The company intends to use the net proceeds for working capital and general corporate purposes.

The closing of the offering is expected to occur on or about August 21.

Roth Capital Partners is acting as the exclusive placement agent for the offering.

GOVX was trading down by 25.59 percent at $5.32 in the pre-market trade on the Nasdaq.