GeoVax Labs Inc (GOVX)

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Sober analysis:

We see GeoVax as a risk reward opportunity with significant long term positive returns. Our price target of $0.25 represents a market cap of $12 million. But risks must be taken into account when investors add positions. One major risk is development/regulatory risk. We remind investors that GeoVax s HIV/AIDS vaccines are still in mid-stage development and the Company still needs to navigate through the regulatory process in the US and around the world, which proves to be long and tough. When it comes to HIV/AIDS vaccine, investors should be aware that this has been a tough area to tackle considering the failed developments already. Cash burn is still a concern. Although most of GeoVax s clinical trials have been supported by the government grants, there is no guarantee that the Company will continue to get enough support to continue late stage clinical studies. In such a case, the Company needs alternative financing measures, which include equity or debt financing. We remind investors that equity financing will dilute existing shareholder base.