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

Rhea-AI Summary

Predictive Oncology (NASDAQ: POAI) has successfully completed a private placement of common stock and warrants, raising $17.6 million. The company issued 9,043,766 shares at $1.95 per share and warrants for an additional 4,521,883 shares at an exercise price of $2.00. Proceeds will be allocated to debt repayment and corporate purposes. The company is required to file a registration statement covering the resale of these shares within five days, aiming for effectiveness within 90 days.

Positive

• Raised $17.6 million through private placement.
• Proceeds will support debt repayment and corporate initiatives.

Negative

• Securities are not publicly registered, limiting resale options.

MINNEAPOLIS, Feb. 23, 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 announced the closing of its previously announced private placement of common stock and warrants priced at-the-market under Nasdaq rules, resulting in gross proceeds to the Company of $17,635,343.70. The Company sold and issued 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 in the private placement, at a purchase price of $1.95 per share of common stock and associated warrant. The warrants have an exercise price of $2.00 per share, are exercisable immediately and have a term of five and one-half years.

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

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 were 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 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

Source: Predictive Oncology Inc.

FAQ

What was the total amount raised by Predictive Oncology (POAI) in its private placement?

Predictive Oncology raised $17.6 million in its private placement.

How many shares of common stock did Predictive Oncology issue in the private placement?

The company issued 9,043,766 shares of common stock.

What is the exercise price of the warrants issued by Predictive Oncology (POAI)?

The exercise price of the warrants is $2.00 per share.

What will Predictive Oncology use the proceeds from the private placement for?

Approximately $5.88 million will be used for debt repayment, with the remainder for general corporate purposes.

What are the resale restrictions on the securities sold by Predictive Oncology?

The securities sold are not registered, limiting their resale in the U.S. without an effective registration statement.