Predictive Oncology Announces $17.6 Million Private Placement Priced At-the-Market

Rhea-AI Summary

On February 18, 2021, Predictive Oncology Inc. (NASDAQ: POAI) announced a private placement to raise approximately $17.6 million by issuing 9,043,766 shares of its common stock and warrants for 4,521,883 shares at $1.95 per share. The placement is expected to close around February 22, 2021, pending customary conditions. The company plans to utilize approximately $5.88 million of the proceeds to repay debt and the remainder for corporate purposes. The warrants have an exercise price of $2.00 and a term of five and a half years.

Positive

• Successful capital raise of approximately $17.6 million.
• Debt repayment of around $5.88 million improves financial stability.
• Warrants provide potential for additional capital if exercised.

Negative

• The dilution effect on existing shareholders from the issuance of new shares.

MINNEAPOLIS, Feb. 18, 2021 (GLOBE NEWSWIRE) -- 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 that it has entered into securities purchase agreements with certain institutional and accredited investors to raise approximately $17.6 million through the issuance of an aggregate of 9,043,766 shares of its common stock and warrants to purchase up to an aggregate of 4,521,883 shares of common stock, at a purchase price of $1.95 per share of common stock and associated warrant in a private placement priced at-the-market under Nasdaq rules. The closing of the private placement is expected to occur on or about February 22, 2021, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the offering.

The warrants have an exercise price of $2.00 per share, are exercisable immediately and have a term of five and one-half years.

The Company intends to use up to approximately $5.88 million of the net proceeds to repay certain indebtedness and the remainder of the net proceeds for general corporate purposes.

The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

Under an agreement with the investors, the Company is required to file an initial registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock to be issued to the investors within five calendar days and to use its best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 90 days after today in the event of a "full review" by the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.

About Predictive Oncology Inc.

Predictive Oncology (NASDAQ: POAI) operates through three segments (Skyline, Helomics and Soluble Biotech), which contain four subsidiaries: Helomics, TumorGenesis, Skyline Medical and Soluble Biotech.

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. TumorGenesis Inc. specializes in media that help cancer cells grow and retain their DNA/RNA and proteomic signatures, providing researchers with a tool to expand and study cancer cell types found in tumors of the blood and organ systems of all mammals, including humans. Skyline Medical 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. Soluble Biotech is a provider of soluble and stable formulations for proteins including vaccines, antibodies, large and small proteins and protein complexes. 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 private placement, the satisfaction of customary closing conditions related to the private placement and the intended use of net proceeds from the private placement, a variety of other risks and uncertainties including, among other things, factors discussed under the heading “Risk Factors” in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements.

Investor Relations Contact:

Landon Capital
Keith Pinder
(404) 995-6671
kpinder@landoncapital.net

FAQ

What is Predictive Oncology's recent capital raise announcement?

Predictive Oncology announced a private placement to raise approximately $17.6 million by issuing 9,043,766 shares and warrants for additional shares at $1.95 each.

What will Predictive Oncology do with the proceeds from the private placement?

The company intends to use approximately $5.88 million to repay certain indebtedness and the rest for general corporate purposes.

When is the closing date for Predictive Oncology's private placement?

The closing of the private placement is expected to occur on or about February 22, 2021.

What are the terms of the warrants issued by Predictive Oncology?

The warrants have an exercise price of $2.00 per share and are exercisable immediately for a term of five and a half years.