GeoVax Debates Smaller Fundraise

GeoVax Labs Inc. is pondering a $5 million to $10 million offering to retail and institutional investors.

The Atlanta-based HIV-1 vaccine developer expects to make the securities offering sometime after Labor Day, but a final decision on the offering will not be made until later.

GeoVax (OTC BB: GOVX) previously deferred an offering it filed with the U.S. Securities and Exchange Commission to sell shares and warrants, citing a decline in its share price that coincided with turbulent general stock market conditions.

"The offering we deferred was intended to give us the financial resources to be much more aggressive in our approach to our clinical pathways but turned out not to be achievable as our stock price declined and general market conditions deteriorated,” GeoVax President and CEO Robert T. McNally said in a statement. “The underlying fundamentals at GeoVax and the strength of our science, however, have not changed. Neither has our enthusiasm for the company's prospects or our excitement about developments with our vaccines."

McNally said a successful smaller offering later this year would give GeoVax funds it needs to make progress into 2012 while being less dilutive to shareholders.

Source: Atlanta Business Chronicle

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