First tranche of preferreds convert to16,666,667 shares at $0.18 each
By Devika Patel
Knoxville, Tenn., Feb. 25 – GeoVax Labs, Inc. said it could raise $6 million in a private placement of series C convertible preferred stock. It has secured commitments for an initial $3 million from a single investor and may raise an additional $3 million within one year via a one-year over-allotment option.
The first-tranche preferreds convert to 16,666,667 common shares at $0.18 per share, which is identical to the Feb. 24 closing share price.
The investor also will receive warrants for 16,666,667 shares in the first closing and will receive warrants for 16,666,667 additional shares when the second tranche closes. Each warrant is exercisable at $0.22 for five years. The strike price is a 22.22% premium to the Feb. 24 closing share price of $0.18.
Maxim Group LLC is the agent.
Settlement of the first $3 million is expected Feb. 26.
Proceeds will be used for working capital and to advance the company's vaccine development programs.
GeoVax is an Atlanta-based biotechnology company that develops human vaccines for HIV and other infectious diseases.
| Issuer: | GeoVax Labs, Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $3 million
|
| Greenshoe: | $3 million
|
| Conversion ratio: | Into 16,666,667 shares
|
| Conversion price: | $0.18
|
| Warrants: | For 16,666,667 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.22
|
| Agent: | Maxim Group LLC
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 26
|
| Stock symbol: | OTCBB: GOVX
|
| Stock price: | $0.18 at close Feb. 24
|
| Market capitalization: | $5.47 million
|
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