GeoVax in $7.5M placing to support vaccine development

GeoVax Labs, an Atlanta, USA-based biotechnology company developing human AIDS vaccines, has entered into a definitive agreement with PURE Capital, a newly-formed investment subsidiary of an established private investment firm, for the sale of $7.5 million of its common stock. Under the terms of the financing, the investment will be made in two closings to occur on August 6 and on November 5. The investor will also receive warrants to purchase additional GeoVax common stock.

Don Hildebrand, GeoVax' chief executive, stated: "this major investment by an institutional investor greatly enhances our AIDS vaccine development and human trials program. The $7.5 million funding allows us to push forward into larger scale Phase II human clinical trials (AIDS prevention), involving substantially more human participants, and the potential commencement of our therapeutic (AIDS treatment) clinical trials currently under consideration."

In addition to the Phase II trials being planned for 2008, GeoVax currently has four human studies underway. As recently announced, early positive immune responses from the first two allowed the accelerated start of human trials number three and four in June. These trials began more than a month earlier than originally anticipated. "Success in these trials could lead to a simpler vaccine regime making it easier to vaccinate people," said Harriet Robinson, GeoVax' scientific advisory board chairperson.