GeoVax Labs, Inc. (OTCMKTS:GOVX)’s Crashed Mistery Run

GeoVax Labs, Inc. (OTCMKTS:GOVX) started this month rather good and didn’t register one session in the red, having great gains which amounted to 128 percent. The mistery run that seemed to be coming out of nowhere, however, had to come to an end.

The severe correction can be most likely attributed to the press release that GOVX made yesterday. As we mentioned in our previous article, the information in their latest financial filing suggested that the National Insitute of Health (NIH) grant money and the current cash the company has on hand will be enough to fund their operations until the second half of 2014.

Despite that, GOVX announced that they have concluded the talks and entered into definitive agreements with certain investors , pursuant to which the company will sell some of its Series B convertible preferred stock at an aggregate purchase price of $1.65 million.

These Series B Convertible preferred stock will be convertible into common GOVX shares at any time at a conversion rate of $0.35 per share, which is quite below the $0.89 the company stock closed at on December 11.

This led to a massive 33.71% drop in price in yesterday’s session on the biggest volume of traded stock in a year. As the price moved from $0.89 to $0.59, we saw a whopping 1 million shares switching hands, generating $600 thousand in dollar volume.

The price of GOVX is still shrinking since today’s open and the ticker is currently 20% down in value, priced at $0.47 per share. It is likely that this will be another session in the red and GOVX will end this week with a loss of about 50% from the peak on Wednesday.

In any case, be sure to do a lot of due diligence and weigh out the risks if you have any thoughts of betting on them.

Makism 3D Corp. (OTCBB:MDDD) also had a bad session yesterday, as their stock dropped 29% in value. Today, they have finally been halted just as we expected. Xumanii International Holdings Corp. (OTCMKTS:XUII) on the other hand are still climbing the charts on increasing volumes of stock and registered another 37% gain yesterday.