GeoVax Stock Is Tumbling Tuesday: What's Going On?

GeoVax Labs Inc GOVX shares are trading lower Tuesday, pulling back from recent strength after the company announced an offering of 1.7 million shares at a price of $5 per share.

What Happened: GeoVax entered into a definitive securities purchase agreement with a certain institutional investor for the purchase and sale of 1.7 million shares of its common stock for $5 per share in a registered direct offering priced above-the-market under Nasdaq rules.

The company also said it will issue warrants to purchase up to 1.7 million shares of common stock in a concurrent private placement with the investor. The warrants will be exercisable immediately and will have a term of five years from the date of issuance.

The offering is expected to close on or about Aug. 21. GeoVax said it expects approximately $8.5 million in gross proceeds from the offering. The company intends to use net proceeds for working capital and general corporate purposes.

The offering comes after GeoVax and several other healthcare stocks associated with mpox surged higher last week after the World Health Organization declared a public health emergency in response to an mpox outbreak in Africa.

“The emergence of a new clade of mpox, its rapid spread in eastern DRC, and the reporting of cases in several neighbouring countries are very worrying. On top of outbreaks of other mpox clades in DRC and other countries in Africa, it's clear that a coordinated international response is needed to stop these outbreaks and save lives,” the WHO Director-General said last week.

See Also: Virax Biolabs Shares Climb With Mpox Cases: What To Know

Geovax Labs is a clinical-stage biotechnology company engaged in developing immunotherapies and vaccines against cancers and infectious diseases. The company previously published information in peer-reviewed journals suggesting its vaccines help prevent mpox.

EF Hutton analyst Jason Kolbert maintained GeoVax with a Buy rating on Monday and kept a price target of $18. Noble Capital Markets analyst Robert LeBoyer maintained an Outperform rating and raised the price target from $6 to $10.

Geovax is scheduled to present at the 74th Emerging Growth Conference on Wednesday. The conference focuses on identifying companies in a wide range of growth sectors with strong management teams, innovative products, focused strategy, execution and the overall potential for long-term growth.

GOVX Price Action: GeoVax shares are up approximately 170% over the past month. The stock was down 11.8% at $6.30 at the time of publication Tuesday, according to Benzinga Pro.

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Photo: NIH Image Gallery from Flickr.