Predictive Oncology Announces $2.2 Million Registered Direct Offering Priced At-The-Market under Nasdaq Rules
May 07 2020 - 8:00AM
Predictive Oncology Inc. (NASDAQ: POAI) (“Predictive Oncology” or
“the Company”), a knowledge-driven company focused on applying
artificial intelligence (“AI”) to personalized medicine and drug
discovery, today announced that it has entered into definitive
agreements with several institutional and accredited investors for
the issuance and sale of an aggregate of 1,396,826 shares of its
common stock, at a purchase price of $1.575 per share, for
gross proceeds of approximately $2.2 million in a registered direct
offering priced at-the-market under Nasdaq rules. Predictive
Oncology has also agreed to issue to the investors unregistered
warrants to purchase up to an aggregate of 1,396,826 shares of
common stock. The closing of the offering is expected to occur on
or about May 8, 2020, subject to the satisfaction of customary
closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the offering.
The warrants have an exercise price equal to $1.45 per share,
are exercisable immediately upon issuance and will expire five and
one-half years from the issuance date.
The Company currently intends to use up to $487,000 of the net
proceeds from the offering to repay certain indebtedness to Oasis
Capital, LLC, and the remainder for working capital purposes.
The shares of common stock described above are being offered and
sold by the Company in a registered direct offering pursuant to a
“shelf” registration statement on Form S-3 (Registration No.
333-234073), including a base prospectus previously filed with the
Securities and Exchange Commission (the “SEC”) on October 3, 2019
and became effective on December 19, 2019. The offering of the
shares of common stock will be made only by means of a prospectus
supplement that forms a part of the registration statement. A final
prospectus supplement and base prospectus relating to the
registered direct offering will be filed with the SEC and will be
available on the SEC's website located at http://www.sec.gov.
Electronic copies of the prospectus supplement and the accompanying
base prospectus may also be obtained by contacting H.C. Wainwright
& Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022,
by phone at 646-975-6996 or e-mail at
placements@hcwco.com.
The warrants described above were offered in a private placement
under Section 4(a)(2) of the Securities Act of 1933, as amended
(the "Act"), and Regulation D promulgated thereunder and, along
with the shares of common stock underlying the warrants, have not
been registered under the Act, or applicable state securities laws.
Accordingly, the warrants and the underlying shares of common stock
may not be offered or sold in the United States except pursuant to
an effective registration statement or an applicable exemption from
the registration requirements of the Act and such applicable state
securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Predictive Oncology Inc.
Predictive Oncology (Nasdaq: POAI) operates through three
segments (Domestic, International and Helomics), which contain four
subsidiaries; Helomics, TumorGenesis, Skyline Medical and Skyline
Europe. Helomics applies artificial intelligence to its rich data
gathered from patient tumors to both personalize cancer therapies
for patients and drive the development of new targeted therapies in
collaborations with pharmaceutical companies. Helomics’
CLIA-certified lab provides clinical testing that assists
oncologists in individualizing patient treatment decisions, by
providing an evidence-based roadmap for therapy. In addition to its
proprietary precision oncology platform, Helomics offers boutique
CRO services that leverage its TruTumor™, patient-derived tumor
models coupled to a wide range of multi-omics assays (genomics,
proteomics and biochemical), and an AI-powered proprietary
bioinformatics platform to provide a tailored solution to its
clients’ specific needs. Predictive Oncology’s TumorGenesis
subsidiary is developing a new rapid approach to growing tumors in
the laboratory, which essentially “fools” cancer cells into
thinking they are still growing inside a patient. Its proprietary
Oncology Discovery Technology Platform kits will assist researchers
and clinicians to identify which cancer cells bind to specific
biomarkers. Once the biomarkers are identified they can be used in
TumorGenesis’ Oncology Capture Technology Platforms which isolate
and help categorize an individual patient’s heterogeneous tumor
samples to enable the development of patient specific treatment
options. Helomics and TumorGenesis are focused on ovarian cancer.
Predictive Oncology’s Skyline Medical division markets its patented
and FDA cleared STREAMWAY System, which automates the collection,
measurement and disposal of waste fluid, including blood,
irrigation fluid and others, within a medical facility, through
both domestic and international divisions. The company has achieved
sales in five of the seven continents through both direct sales and
distributor partners. For more information, please
visit www.predictive-oncology.com.
Forward-looking Statements
Certain of the matters discussed in this press release contain
forward-looking statements that involve material risks to and
uncertainties in the Company’s business that may cause actual
results to differ materially from those anticipated by the
statements made herein. Such risks and uncertainties include:
market and other conditions, the completion of the registered
direct offering, the satisfaction of customary closing conditions
related to the registered direct offering and the intended use of
net proceeds from the registered direct offering, we may not be
able to continue operating without additional financing; current
negative operating cash flows; the terms of any further financing,
which may be highly dilutive and may include onerous terms; no
assurance that a vaccine will be successfully developed in
collaboration with Dr. Daniel Carter, or that definitive
documentation of all arrangements with Dr. Carter will be
completed, risks related to the 2019 merger with Helomics
including; 1) significant goodwill could result in further
impairment; 2) possible failure to realize anticipated benefits of
the merger; 3) costs associated with the merger may be higher than
expected; 4) the merger may result in the disruption of our
existing businesses; and 5) distraction of management and diversion
of resources; risks related to our partnerships with other
companies, including the need to negotiate the definitive
agreements; possible failure to realize anticipated benefits of
these partnerships; and costs of providing funding to our partner
companies, which may never be repaid or provide anticipated
returns; risks related to the transaction with Quantitative
Medicine including: 1) completion of the transaction; 2) possible
failure to realize anticipated benefits of the merger; 3) costs
associated with the merger may be higher than expected; 4) the
merger may result in the disruption of our existing businesses; and
5) distraction of management and diversion of resources; risk that
we will be unable to complete the transaction with InventaBioTech
to acquire Soluble Therapeutics and BioDtech; risk that we will be
unable to protect our intellectual property or claims that we are
infringing on others’ intellectual property; the impact of
competition; acquisition and maintenance of any necessary
regulatory clearances applicable to applications of our technology;
inability to attract or retain qualified senior management
personnel, including sales and marketing personnel; risk that we
never become profitable if our product is not accepted by potential
customers; possible impact of government regulation and scrutiny;
unexpected costs and operating deficits, and lower than expected
sales and revenues, if any; adverse results of any legal
proceedings; the volatility of our operating results and financial
condition; and management of growth. In addition, our business and
operations have been and will likely continue to be materially and
adversely affected by the COVD-19 pandemic, including impact on a
significant supplier; a reduction in on-site staff at several of
our facilities, resulting in delayed production and less
efficiency; impact on sales efforts; impact on accounts receivable
and terms demanded by suppliers; and possible impact on financing
transactions; resulting in a possible continued material adverse
effect on our business, financial condition and results of
operations. These and other risks and uncertainties may be detailed
from time to time in the Company’s reports filed with the SEC,
which are available for review at www.sec.gov.
Investor Relations Contact:
Hayden IRJames
Carbonara(646)-755-7412james@haydenir.com
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