Predictive Oncology Inc. Announces Receipt of Cash Proceeds of $2.2 Million from Exercise of Warrants
June 29 2020 - 4:30PM
Predictive Oncology Inc. (the “Company,” “Predictive Oncology,”
“we,” “our” or “us”) (NASDAQ: POAI), a knowledge-driven company
focused on applying artificial intelligence (“AI”) to personalized
medicine and drug discovery, today announced the closing of its
previously announced transaction resulting in gross cash proceeds
to the Company of approximately $2.2 million, prior to deducting
placement agent fees and offering expenses, through the exercise of
certain existing warrants by several holders to purchase an
aggregate of up to 1,396,826 shares of common stock at an exercise
price of $1.575 per share. The shares of common stock issued upon
exercise of the existing warrants are registered for resale
pursuant to a registration statement on Form S-1 (File No.
333-239207).
In consideration for the immediate exercise of the
existing warrants for cash, the exercising holders received new
unregistered warrants to purchase up to an aggregate of 1,396,826
shares of common stock at an exercise price of $1.80 per share with
an exercise period of five and one-half years from the date of
issuance.
The Company expects to use the net proceeds from
this offering for working capital and general corporate
purposes.
H.C. Wainwright & Co. acted as the exclusive
placement agent for the offering.
The new warrants described above were offered in a
private placement pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and, along with the shares of common stock
issuable upon the exercise thereof, have not been registered under
the Securities Act, and may not be offered or sold in the United
States absent registration with the Securities and Exchange
Commission or an applicable exemption from such registration
requirements. The securities were offered only to accredited
investors. The Company has agreed to file one or more registration
statements with the Securities and Exchange Commission covering the
resale of the shares of common stock issuable upon exercise of the
warrants.
This press release shall not constitute an offer to
sell or a 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 the
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 other), 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, including the intended use of the proceeds from the
transaction described herein, are 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: 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; 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 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 IR James Carbonara (646)-755-7412
james@haydenir.com
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